It is a pleasure to serve under your chairmanship, Sir David.
It is also a pleasure to follow the hon. Member for Hazel Grove (Mr Wragg). Like him, I welcome today’s timely announcement, but there is still a huge amount of work to be done in helping those who are caught in the leasehold trap like many of my constituents.
I first became aware of this issue around Christmas last year, when I was contacted by my constituent, Linda Barnes. She told me that her house, which she had
bought new from Taylor Wimpey in 2011 for £147,000, had a ground rent that doubles every 10 years and that had been sold on by Taylor Wimpey to E & J Estates. She had been quoted a price of £35,000 to buy the lease before it doubled.
Very soon after that, I heard from another constituent, Jonathan, who had bought a house from Countryside Properties in 2010 using the Government’s HomeBuy Direct initiative, which was later renamed Help to Buy. Jonathan said that he had been made aware that the development was to be leasehold and that an annual ground rent of £200 was payable to the owner of the land, Countryside Properties. Six months after he moved in, Jonathan received a letter informing him that the freehold had been sold on to a company called Tuscola Ltd, based in the British Virgin Islands. He was quoted over £6,000 to buy the freehold. He also discovered a doubling clause in his lease that meant that by 2055 the ground rent would be £1,600 per year. This is causing him a great deal of concern, because by the time he reaches retirement age his ground rent will be unaffordable and will make his home unsellable. As Jonathan said:
“Considering the significant cost of new homes one would have thought that the last thing one should worry about is the land the house sits on and that it can seemingly be sold on from underneath you.”