Measures to make it easier for leaseholders to get tenant associations formally recognised so they have more power to raise complaints with landlords will also be included within a consultation launched today.

At the moment average leaseholders pay more than £300 ground rent each year, with some paying as much as £700.

In recent years developers have sparked outrage by selling houses as leasehold to new buyers with the investors then making money on the freehold.

These homeowners have then found selling their home is more expensive and can take longer.

Communities secretary James Brokenshire said: “Unfair ground rents can turn a homeowner’s dream into a nightmare by hitting them in the back pocket, and making their property harder to sell.

“That’s why I’m taking concrete action to protect homeowners and end those unscrupulous leasehold practices that can cost tenants hundreds of pounds.”

The consultation runs for six weeks and will ask for views on appropriate and fair exemptions for the houses that can be sold as leasehold, such as shared ownership properties.