Major housing change that could save five million households thousands of pounds

LEASEHOLDERS will be spared paying crippling costs to fix their unsafe buildings - as ministers force developers to pick up the bill.

Housing Secretary Michael Gove has given firms a six-week ultimatum to agree to tough new terms or face effectively being banned from building new homes.

Companies must also reimburse taxpayers where public cash has already been used to repair Grenfell-style faults.

Around five million leaseholders in Britain will benefit from the reforms.

Residents have been hit by staggering bills - sometimes six figures - to get their properties to fire safety standards.

Mr Gove said: “Today marks another significant step towards righting the wrongs of the past and protecting innocent leaseholders, who are trapped in their homes and facing unfair and crippling costs.

“Too many developers, along with product manufacturers and freeholders, have profited from these unsafe buildings and have a moral duty to do the right thing and pay for their repair.

“There will be nowhere to hide for those who fail to step up to their responsibilities - I will not hesitate to act and they will face significant consequences.”

The new contract will compel developers to stump up £2billion to shore up any dodgy homes they have done over the past 30 years. 

Legislation will also increase transparency so service charges are more transparent so leaseholders can see if their bills are value for money.

Most firms are expected to agree to Mr Gove’s deadline, with construction giant Persimmon already confirming its approval.

Its chief executive Dean Finch said: ““The publication of the developer remediation contract is the culmination of many months of hard work on all sides and we are pleased to confirm our intention to sign the final document in the near future, becoming the first developer to do so.”

Legislation comes on top of planned reforms for renters including a ban on no-fault evictions.

And it follows a shake-up that saw pricey ground rents scrapped for leasehold homes.