US EditionStarmer to cap ground rents after MPs threaten rebellion: Report
Labour will cap annual ground rents at £250 for existing leaseholders, dropping to a nominal amount after 40 years, benefiting nearly 900,000 people this parliament, officials said.
- On Tuesday, Prime Minister Sir Keir Starmer announced ground rents on leases predating 2022 will be capped at £250 a year, with the draft Commonhold and Leasehold Reform Bill published on Tuesday.
- Angela Rayner galvanised backbench pressure by leading more than 80 Labour MPs, while a letter coordinated last month and Justin Madders's last week warning urged ministers to uphold the pledge.
- Ministers will ban new leasehold flats, abolish forfeiture over debts as low as £350, and give leaseholders in England and Wales rights to convert to commonhold, while the English Housing Survey reports average ground rents of £304 in 2023/24.
- The Residential Freehold Association warned the cap `will tear up long-established contracts` and could `seriously damage investor confidence` and UK investment reputation.
- The change will come into force from 2028, with nearly one million leaseholders benefiting during this parliament, and the housing secretary told Mornings with Ridge and Frost, `People have been campaigning to abolish this for decades.
53 Articles
53 Articles
The battle over leaseholds is far from over
“Good news for homeowners: we’re capping ground rent at £250”, announced Keir Starmer in a TikTok video yesterday. The announcement will have pleased the likes of Angela Rayner, who last week described a “titanic battle” between “hard-working leaseholders” and the “unaccountable investors” who own freeholds on millions of properties across the UK. It was also the fulfilment of a Labour manifesto promise to “finally bring the feudal leasehold sys…
The government of Keir Starmer has finally decided to push forward one of the most enthusiastic economic reforms of its electoral program in the left wing of the Labour Party and more resistance generates among individuals, companies, funds and institutions that own real estate in the United Kingdom. The prime minister announced this Tuesday that the annual rent paid by the owners of a leasehold housing — halfway between the property and a very …
Telegraph & Argus
What is ground rent? All to know amid Government changes and new £250 cap
Prime Minister Sir Keir Starmer has revealed that ground rents are being capped at £250-a-year in England and Wales, but what does this mean?
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