LABOUR has announced a raft of ambitious proposals for a “revolution in rights” for victims of the leasehold scandal.

This week Labour’s Shadow Housing Secretary, John Healey MP, and Bury North MP James Frith published a consultation setting out plans to end leasehold ownership of houses and flats, alongside measures they say will save leaseholders thousands of pounds.

Hundreds of people across Bury have been affected by the leasehold scandal, subjecting them to exploitative ground rents, onerous contract terms and arbitrary fees to their free holders.

Mr Healey, who visited Bury last year to hear from homeowners who feel ripped off by their leasehold contracts, said: “Leasehold is a symbol of our broken housing system, with millions of England’s homeowners feeling like they’ve bought their home but still don’t own it.

“This consultation document sets out the next Labour Government’s ambition to end the broken leasehold model for good.”

Among the radical plans is a proposed ban on the of the sale of new leasehold houses and flats, and the option for leaseholders to buy the freehold on their home for one per cent of the property value.

This could mean the cost of buying the freehold on a house values at £250,000, with a 90-year lease, is slashed by almost £8,000, plus expensive legal fees, to £2,500.

The proposals also include an end to ground rents for new homes, as well as cap of 0.1 per cent for existing leaseholders.

This could see the average Bury household have their annual ground rent capped at £175, where it can currently be in the thousands.

A crack down on unfair fees and contract terms and a right to challenge these fees and poor service is also being proposed.

As are new rights for leaseholders to hire and fire management agents, or take over management themselves.

Additionally, Labour has further promised to revive commonholds.

Mr Frith MP said: “Leaseholders have everything stacked against them. Too often they suffer extortionate fees, appalling service and restrictive contract terms, and no way to easily challenge them.

“England is one of the only places in the world which has failed to move away from this feudal system. Across the world, modern alternatives like commonhold have flourished.

“Labour will improve and revitalise commonhold for flats, and make freehold mandatory for all new houses, as the Conservatives should have done years ago.”

The Labour plans have been welcomed by the National Leasehold Campaign group, which described them as “nothing short of life changing for millions of leaseholders”.

The organisation also praised the plans for their proposals to improve the situation for existing leaseholders.

The Labour consultation follows a Government announcement of its own proposed measures to tackle the leasehold scandal.

Unveiled by the Minister of Housing, Communities and Local Government, James Brokenshire MP, the announcement included plans to reduce ground rent on new leases to £0, and a pledge to pass legislation ensuring all new-build houses will are now sold as freehold.