One of the barriers facing agents who sell new-build apartments has been, since the leasehold miss-selling scandal erupted last year, to re-assure buyers that they are not going to be ripped off.
Following the scandal, the government has promised to dramatically overhaul the leasehold system, which is the result of a long battle to make the system less opaque, particularly when it comes to ground rents.
And now the first new homes development to be unencumbered by ground rents is set to launch. Set in stone in fact – as estate agency Stone Real Estate launches its Newington Gate development in London N16.
With a range of one and two bedroom apartments it is the first to be launched with no ground rents payable for homebuyers that buy a property.
Newington Gate will have 32 private sale apartments, 12 shared ownership and 28 affordable rent apartments. The scheme is a joint venture between Hill and Anchor Hanover who will manage the shared ownership and affordable rent (exclusively for over 55 year olds) and 56% of the new homes delivered by the partners at Newington Gate will be affordable.
Founder and CEO of Stone Real Estate, Michael Stone (left), formerly Countrywide’s Head of Land and New Homes said: “Not only are we delighted to be offering these homes for sale but we’re proud to be leading change in the sector and doing so without any ground rents payable by the buyer.
“Ground rents and their tendency to fluctuate have been a contentious topic in recent years and while the industry is considering scrapping them as a whole, we wanted to drive this change now, in order to benefit our buyers.