Leasehold: Ground Rent

(asked on 8th February 2023) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what steps the Government are taking to increase the regulation of ground rent increases for leaseholders.


Answered by
Rachel Maclean Portrait
Rachel Maclean
This question was answered on 24th February 2023

The Government has already legislated via the Leasehold Reform (Ground Rent) Act 2022. The Act makes homeownership fairer and more transparent for thousands of future leaseholders future leaseholders, by preventing landlords under most new residential long leases from requiring a leaseholder to pay a financial ground rent. If any ground rent is demanded as part of a new residential long lease that is regulated by the Act, it cannot be for more than one peppercorn per year.

We understand that some leaseholders have suffered as a result of high and escalating ground rents. Unfair practices have no place in the housing market and the Government is committed to ending them. We want to see homeowners who have been affected obtain the justice and redress they deserve. This is why we asked the Competition and Markets Authority (CMA) to investigate potential mis-selling of homes and unfair terms in the leasehold sector.

The CMA have secured commitments benefiting over 20,000 leaseholders.

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