Proposals suggest the majority of new build houses should be sold as freehold, with new leases capped at £10.
While leasehold generally applies to flats with shared spaces, a number of developers have increasingly been selling houses on these terms, which places additional financial burdens on buyers through surcharges such as ground rent.
Communities Secretary James Brokenshire has launched a consultation on such plans to improve the leaseholder sector for prospective homeowners.
Brokenshire explained:
“Unfair ground rents can turn a homeowner’s dream into a nightmare by hitting them in the back pocket, and making their property harder to sell.
He added:
“That’s why I’m taking concrete action to protect homeowners and end unscrupulous leasehold practices that can cost tenants hundreds of pounds.”