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

To ask the Secretary of State for Housing, Communities and Local Government, whether he has made a comparative assessment of the potential effect on the viability of the leasehold sector of (a) regulating ground rents and (b) removing the financial value of ground rents; and if he will make a statement.

The Government wants to ensures that consumers only pay for services that they receive. We will introduce legislation so that, in the future, ground rents on newly established leases of houses and flats are set at a peppercorn. Costs incurred by landlords for overseeing and appointing a managing agent, or carrying out wider services, can be recovered through the service charge or a marginally higher sales price.

Prior to introducing any final legislation in Parliament, the Government will undertake a regulatory impact assessment. As part of this evidence-based procedure, we will assess the economic, social, and environmental effects of the policy. This will include an assessment of the economic implications of setting ground rents to a peppercorn in terms of viability, affordability, and supply.