The vast majority of newly built houses are to be sold as freehold in a bid to stop families being forced to pay exorbitant ground rents and fees on leasehold properties.

Communities Secretary James Brokenshire will tomorrow launch a consultation on plans to improve the leaseholder sector for home owners.

He will propose that ground rents for new leases will be capped at just £10. On average leaseholders pay more than £300 ground rent each year, with some paying as much as £700.

While flats have often been sold with leases, until recently it was rare for houses to be offered on leasehold terms. But, over the past decade, housebuilders such as Taylor Wimpey, Bovis, Persimmon, Bellway and Redrow realised they could boost profits by selling on freehold rights to third-party investors attracted by the income from ground rents.