Speed up £250 cap on leasehold ground rent, MPs urge
Summary
MPs in England and Wales want the government to introduce a £250 annual cap on leasehold ground rents sooner than planned. The government currently aims to enforce the cap by late 2028 but MPs suggest bringing it forward to late 2027 to help leaseholders who face rising fees and difficulty selling their homes.Key Facts
- Ground rent is an annual fee paid by leaseholders to the freeholder for the land their home sits on.
- The government plans to cap this fee at £250 per year and aims to start the cap in late 2028.
- A committee of MPs wants the cap introduced earlier, by late 2027.
- About five million homes in England and Wales are leasehold properties.
- The government also plans to end new leasehold flat sales and promote commonhold ownership, where owners share responsibility for their buildings.
- Some leaseholders face rising ground rents that make it hard to sell or get a mortgage.
- Ground rents currently often rise over time, sometimes doubling or increasing with inflation.
- The government proposes reducing ground rents to nearly zero after 40 years, but MPs want this transition period shortened to 20 years.
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