Government to cap new leasehold ground rents at £10

Ryan Bembridge

October 15, 2018

The government has launched a consultation on plans to cap ground rents on new leases at £10.

It’s also been proposed that the majority of new build houses should be sold as freehold.

Currently average leaseholders pay over £300 ground rent each year, with some paying as much as £700.

James Brokenshire, secretary of state for communities, said: “Under the government’s proposals, which are subject to consultation, the majority of new houses will be sold as freehold and future ground rents will be reduced to a nominal sum.

“The consultation will also seek views on what are the appropriate and fair exemptions, such as shared ownership properties and community led housing to ensure consumers’ best interests are at the heart of the property market.

“To further support leaseholders, ministers have also made it easier for them to form recognised tenant associations by reducing the minimum membership required.

“This will further empower those in leasehold homes to enforce their collective rights and hold landlords to account.”

The government first vowed to act on leaseholds in December last year.

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