Summary
A former minister warns that the UK government might face opposition if it reduces its promised reforms to the leasehold system in England and Wales. Labour has committed to capping ground rents, but concerns exist about how this could affect pension funds. The government promised to legislate changes but delayed the draft bill.
Key Facts
- Justin Madders, a former minister, warns of a possible "mass rebellion" if leasehold reform promises are reduced.
- Ground rents are fees leaseholders pay to freeholders, and Labour wants these capped.
- In 2022, most new residential leasehold properties in England and Wales had ground rents abolished, but existing homes still have them.
- Labour’s election manifesto promised to tackle high ground rent charges, but there are concerns about the economic impact.
- The government had promised a draft bill to reform the leasehold system, but it has been delayed due to ground rent issues.
- Around five million homes in England and Wales are leasehold properties.
- There are disagreements on setting a cap for ground rents, with a £250 yearly cap being more likely.
- Concerns exist about how a cap might impact pension funds that own freehold properties.
