Local politicians and industry experts have welcomed new proposals announced by the Government’s communities secretary Sajid Javid yesterday, to stop new houses from being sold as leasehold.

Justin Tomlinson, the Conservative MP for North Swindon, where new developments have gone on sale with leaseholds tying people into spiralling ground rents, led the plaudits for the change.

“I’m thrilled that the Government is taking action because Swindon, where a lot of new-build is going on, is really affected," said Mr Tomlinson.

“This is an issue I’ve been very active on in Parliament. This is a growing problem for many new-build communities, with houses sold not as freehold but as leasehold, and seeing large year-on-year increases in ground rent.”

Cherry Jones, a property manager of Swindon-based Home From Home who has worked closely with Mr Tomlinson in pushing the issue in Parliament, said she was “absolutely delighted”.

She highlighted the effect leaseholds have on some new developments in Swindon, saying: “In North Swindon, there’s been a lot of properties built there on leasehold. In particular, the leases in Oakley Park have doubling ground rents every 10 years, so that in 50 years’ time they’ll be paying £8,000 a year in ground rent.

“In some cases, it’s been quite incestuous, where the leasehold has already been promised to a freeholder before the homes have been built.

"People have been promised the freehold when they completed the purchase only to find that the it had been sold on to somebody else.”

Although ground rents on new-build flats are expected to be reduced to 'peppercorn rents', they could still be sold on leasehold, and Ms Jones warned there was still work to be done.

“It’s a start, but it is not enough. Leasehold in total needs to be looked at,” she said.

“It is obscene particularly because the Government introduced commonhold – which would be the way forward – where everyone owns has a common interest in the land.

"Flats should not be sold on leasehold, they should be on commonhold.”

Conservative councillor Dale Heenan also cautiously welcomed the move.

He said: “The Government's announcement is great news.

"The law desperately needs urgent reform, but it needs to go much further and tackle existing properties, not just new homes being built. This is an issue many people don't understand but it deeply affects hundreds of families across Swindon.

“I started investigating when my ground rent doubled from £250 to £500 earlier this year. Within 40 years it will be £8,000 per year.

"Potentially every flat built by Taylor Wimpey between 2007 and 2011 could have a clause that doubles the ground rent every year, and they won’t be the only builders.

“Dozens and dozens of people have already been identified, and more from Taw Hill, Dorcan to East Wichel could be included. Without fail, everyone I've spoken too said Taylor Wimpey and solicitors said nothing.

"This is precisely what the Government is now trying to stamp out.”