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.