Major housebuilders may be forced to spend millions compensating homebuyers locked into unfair leasehold contracts following a warning by housing minister Gavin Barwell.
Barwell ordered developers in the House of Commons to halt future sales of leasehold houses or face government action next year.
Developers are also being pressured to conjure solutions for householders where rents have made their property difficult to place on the housing market.
This comes after homebuyers have been left with unsaleable houses as lenders refuse to offer mortgages thanks to ground rent clauses.
When speaking to the commons, Barwell used the example of a homebuyer in his constituency who was told the freehold would cost £3,750 to purchase, and then when sold to a third party the price rose to £12,750 the following year.
