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

Today, the party 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 Bolton have been affected by the leasehold scandal, subjecting them to exploitative ground rents, onerous contract terms and arbitrary fees to their free holders.

Labour’s Shadow Housing Secretary, John Healey MP, who visited Bolton earlier this 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 £250,000 house 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; a crack down on unfair fees and contract terms and a right to challenge these fees and poor service; as well as new rights for leaseholders to hire and fire management agents, or take over management themselves.

Additionally, Labour has further promised to revive commonholds.

Bolton North East MP, Sir David Crausby, who has been working with Mr Healey on leasehold, said: "The time has come for an end to the whole principal of leaseholds.

"It is absolutely outdated and the reality is in recent years it has been abused by freehold companies who have done their best to extract every penny from leaseholders and we should get shut of it.

"These proposals are a step in the right direction and I look forward to a day when leaseholds are a thing of the past."

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

The organisation, which was co-founded by Jo Darbyshire from Lostock, also praised Labour’s proposals to improve the situation for those already affected by the scandal.

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, two weeks ago, the announcement included plans to reduce ground rent on new leases to £0, and a pledge to pass legislation ensuring all new-build houses are now sold as freehold.