Ground rent cap to be introduced a year early
The Government previously indicated that the £250 annual cap on ground rents would be introduced by late 2028.
Ground rents paid by more than four million leaseholders will be capped a year earlier than planned after ministers came under pressure to speed up the reforms.
The Government had previously indicated that the £250 annual cap on residential ground rents in England and Wales would be introduced by late 2028. The Times reports it is now expected to commit to a late-2027 implementation date.
Undue delay.
It comes after increasing pressure from Labour MPs and a report by the Housing, Communities and Local Government Committee, which urged ministers to implement the reforms without undue delay.
Housing Minister Matthew Pennycook had previously told MPs there were “a number of remaining policy choices” to work through before the cap could be introduced.
The vast majority of leaseholders simply want to see the £250 cap on ground rents implemented without undue delay.”
The committee, however, questioned the need for further delays while a small number of possible exemptions were considered, saying: “The vast majority of leaseholders simply want to see the £250 cap on ground rents implemented without undue delay.”
Under proposals in the forthcoming Commonhold and Leasehold Reform Bill, ground rents will be capped at £250 a year before reducing to a peppercorn rate after 40 years.
Ministers are expected to reject calls to shorten the 40-year transition period, arguing that doing so could increase the risk of legal challenges from freeholders.
The draft Bill was published in January, and the final legislation is expected to be introduced before Parliament’s summer recess in July.
A spokesperson for the Ministry of Housing, Communities and Local Government said the reforms would save leaseholders thousands of pounds over the course of their leases.
They also need to reform crooked management companies that make it so hard to raise an RTM . (right to manage) by the owners,, then when you do raise a right to manage, they have bombarded everyone with bills for this and that, ps20, pZA, etc etc, fictitious balance fees for each year service fees going back 5 years, putting their own late payment charges on already made-up fees, because they want to raise as much money before they get booted out. Should all be illegal, just a totally crooked industry, that is basically a cartel. A Medieval fleecehold law that is all it has ever been. Should be quicker powers from leasehold tribunal to help stop months and years of bullying and worry. One of the worst housing systems world-wide.