Restricting ground rents for flat owners

Following the King’s Speech on 07 November 2023, The Department for Levelling Up, Housing and Communities has commenced public consultation around a series of options for how the government could intervene to cap the ground rent leaseholders currently pay.

The consultation outlines 5 options:

• capping ground rents at a peppercorn
• setting maximum financial value for ground rent
• capping ground rents at a percentage of the property value,
• limiting ground rent to the original value when the lease was agreed
• freezing ground rent at current levels.

The consultation will be open for 6 weeks from 09 November 2023 and any reforms that follow should be introduced through the Leasehold and Freehold Reform Bill.

The link below explains how to engage in the consultation.

https://www.gov.uk/government/consultations/modern-leasehold-restricting-ground-rent-for-existing-leases/modern-leasehold-restricting-ground-rent-for-existing-leases