Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, whether he has made an assessment of the (a) prevalence and (b) potential impact on freehold property sales of restrictive rent-charge clauses used by developers.
My Department has not carried out an assessment of the prevalence and potential impact on freehold property sales of rent-charge clauses.
The Leasehold and Freehold Reform Act 2024 contains measures to protect homeowners on freehold estates, including specific measures to improve the home buying and selling process by ensuring information required to sell a home on a freehold estate is accessible at a reasonable cost. We will be consulting this year on the secondary legislation that is required to switch on most of these measures.
The government is determined to end the injustice of ‘fleecehold’ entirely and we will also consult this year on legislative and policy options to reduce the prevalence of private estate management arrangements, which are the root cause of the problems experienced by many residential freeholders.