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Starmer to cap ground rents after MPs threaten rebellion: Report
Labour will cap annual ground rents at £250 for existing leaseholders, dropping to a nominal amount after 40 years, benefiting nearly 900,000 people this parliament, officials said.
- On Tuesday, Prime Minister Sir Keir Starmer announced ground rents on leases predating 2022 will be capped at £250 a year, with the draft Commonhold and Leasehold Reform Bill published on Tuesday.
- Angela Rayner galvanised backbench pressure by leading more than 80 Labour MPs, while a letter coordinated last month and Justin Madders's last week warning urged ministers to uphold the pledge.
- Ministers will ban new leasehold flats, abolish forfeiture over debts as low as £350, and give leaseholders in England and Wales rights to convert to commonhold, while the English Housing Survey reports average ground rents of £304 in 2023/24.
- The Residential Freehold Association warned the cap `will tear up long-established contracts` and could `seriously damage investor confidence` and UK investment reputation.
- The change will come into force from 2028, with nearly one million leaseholders benefiting during this parliament, and the housing secretary told Mornings with Ridge and Frost, `People have been campaigning to abolish this for decades.
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What is ground rent? All to know amid Government changes and new £250 cap
Prime Minister Sir Keir Starmer has revealed that ground rents are being capped at £250-a-year in England and Wales, but what does this mean?
·Bradford, United Kingdom
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Total News Sources41
Leaning Left6Leaning Right1Center17Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 25%
C 71%
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