MPs warn of ‘fleecehold’ on new housing estates

46 Tories, including two former housing ministers, call for ban on such arrangements. Leasehold Bill is working its way through Parliament and will be debated in the Lords on Wednesday. Up to four million people are now thought to be living on such estates. Mr Gove has labelled leaseholds “an outdated feudal system.

Ms Kendrick said a nominal ground rent had historically been the norm. But escalating fees were increasingly being introduced, she said. But Melanie Leech of the British Property Federation agreed there were problems. She claimed ground rent was a different problem as they were treated as long-term investments by companies including pension funds.

A Department for Housing spokesman said the bill was for “comprehensive and much needed reform. He said: ‘The idea the government would be taking action that disincentivises that investment, that makes the UK less attractive to invest in is something we find really hard to believe in.