Local Labour MPs call out ground rent “scam”

Tony Lloyd, MP for Rochdale

Sky-high ground rent on new-builds could be scrapped if plans get the go ahead. The news comes as the North West is singled out as a hotspot for costly leasehold agreements and ground rents.

Rochdale MP Tony Lloyd has welcomed the “overdue” plans but urged residents to treat the news with “caution”.

He said: “There is more to be done for families blighted by the ground rents scam and I think we must tread with caution because this isn’t just about new-builds, as we said in our manifesto - for the many - we are clear that existing leaseholders, especially in the North West and in Rochdale, need stronger rights too.”

Mr Lloyd, who was also appointed by Jeremy Corbyn as Shadow Housing Minister when the new Parliament kicked-off, added: “The government’s plans are overdue, they have known about and ignored the ground rents scandal for a long time, allowing hard-working families to be ripped off under these costly leasehold agreements.”

Earlier this year, Liz McInnes, Labour MP for Heywood and Middleton, spoke out in support of hundreds of local residents who have found themselves the victims of a ground rent "rip-off".

https://www.rochdaleonline.co.uk/news-features/2/news-headlines/108452/%E2%80%98ground-rent-ripoff-must-end%E2%80%99-says-liz-mcinnes-mp

Speaking to Rochdale Online today (Tuesday 25 July), Ms McInnes said: ""The leasehold scandal is outrageous and has left lots of homeowners in Heywood and Middleton facing real difficulty and uncertainty.

"I am pleased that the government appear to be considering scrapping leaseholds for new build houses and this will prevent this scandal affecting future buyers, and I hope that they will also be announcing plans to help those who have been affected so far.

"Extortionate leasehold charges are proving to be the PPI of the housebuilding industry and the sooner the rip-off ends the better."

The leasehold system is typically used in flats but the trend for new-build houses that have been sold as leasehold has rocketed in recent years.

According to figures from the Department for Communities and Local Government, almost 21% of private housing in England are owned by leaseholders and 30% of those properties are houses rather than flats.