Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Levelling Up, Housing and Communities, whether his Department is taking steps to protect existing leaseholders from regularly doubling ground rents which may eventually result in unaffordable costs.

The Government is committed to protecting leaseholders from abuse and poor service.

We have already taken action to end unfair practices in the leasehold market, beginning with the Leasehold Reform (Ground Rent) Act 2022, which will come into force on 30 June. The Act makes homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.

We understand the difficulties some existing leaseholders face with high and escalating ground rents. 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 has secured commitments from Aviva, Persimmon, Countryside Properties and Taylor Wimpey to amend their practices, including commitments to remove lease terms that led to doubling ground rents, houses sold as leasehold and to support leaseholders to buy the freehold at the original price quoted. This is a hugely important step and demonstrates our determination to support affected leaseholders. We welcome this action and urge other developers to follow suit.