Labour's Ground Rent Cap: A Battle for Leasehold Reform
Angela Rayner has warned that landlords opposed to the government's £250 cap on ground rents may resort to "lawfare" to block the changes. The Labour party announced the cap as part of its leasehold reform plan, which also includes a consultation on banning new leasehold flats and giving leaseholders the right to switch to commonhold.
The cap will drop to an almost negligible rate after 40 years, a move that campaign groups have long pushed for. However, freeholders are already raising concerns about the impact of the reforms on their business models and property rights.
Critics argue that the government's decision not to immediately enforce peppercorn ground rents is a "step backwards". The National Leasehold Campaign has expressed disappointment, acknowledging that the cap will offer some relief but warning that 40 years is an "incredibly long time" for leaseholders to wait.
Experts say the speed of leasehold reform is "glacial" and that meaningful change requires prompt implementation. Homehold managing director Linz Darlington described the announcement as "positive", but emphasized the need for swift passage into law, warning that at the current pace, it may not be for many years to come.
The reforms are part of a new draft leasehold and commonhold reform bill, which aims to abolish forfeiture, give building owners more control over annual budgets, and introduce new protections in case of issues arising. However, freeholders argue that this will "seriously damage investor confidence" and warned about the potential risks of the commonhold system.
The Residential Freehold Association has expressed concerns that the cap on ground rent is a "wholly unjustified interference with existing property rights". Others have raised caution about the commonhold system, advocating for a blended model that balances resident control with experienced management.
As the debate rages on, one thing remains clear: leaseholders are fighting for their right to affordable housing and fair treatment.
Angela Rayner has warned that landlords opposed to the government's £250 cap on ground rents may resort to "lawfare" to block the changes. The Labour party announced the cap as part of its leasehold reform plan, which also includes a consultation on banning new leasehold flats and giving leaseholders the right to switch to commonhold.
The cap will drop to an almost negligible rate after 40 years, a move that campaign groups have long pushed for. However, freeholders are already raising concerns about the impact of the reforms on their business models and property rights.
Critics argue that the government's decision not to immediately enforce peppercorn ground rents is a "step backwards". The National Leasehold Campaign has expressed disappointment, acknowledging that the cap will offer some relief but warning that 40 years is an "incredibly long time" for leaseholders to wait.
Experts say the speed of leasehold reform is "glacial" and that meaningful change requires prompt implementation. Homehold managing director Linz Darlington described the announcement as "positive", but emphasized the need for swift passage into law, warning that at the current pace, it may not be for many years to come.
The reforms are part of a new draft leasehold and commonhold reform bill, which aims to abolish forfeiture, give building owners more control over annual budgets, and introduce new protections in case of issues arising. However, freeholders argue that this will "seriously damage investor confidence" and warned about the potential risks of the commonhold system.
The Residential Freehold Association has expressed concerns that the cap on ground rent is a "wholly unjustified interference with existing property rights". Others have raised caution about the commonhold system, advocating for a blended model that balances resident control with experienced management.
As the debate rages on, one thing remains clear: leaseholders are fighting for their right to affordable housing and fair treatment.
This whole thing is just another example of how politics gets in the way of common sense, ya know? I mean, £250 a year on ground rent after 40 years feels like a decent starting point, but we're already seeing freeholders getting all bent outta shape about it. 
It's like they think they own the place and can just dictate how much other people pay. Newsflash: they don't! The fact that they're threatening "lawfare" over this is just ridiculous – who needs that kind of drama? And what really gets my goat is when they talk about "interference with existing property rights"... like, hello? Property rights don't mean you get to rip off your neighbors and friends for decades on end. That's just not how it works! 
. This £250 cap on ground rents is a solid step forward, even if it does feel like we're taking baby steps 
. And hey, at least the government's acknowledging that there's a problem and is trying to do something about it 
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. It feels like they've got too much power and not enough accountability 
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. We're not going down without a fight, and it's time for some real change 
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... like, we're already 5 years into a 'reform' and it's taking ages to get anywhere 
. I'm not surprised landlords are getting all worked up about losing their gravy train, but come on, £250 cap? That's still pretty ridiculous considering how much property prices have inflated over the past decade 
. And what's with freeholders thinking they're the only ones who care about property rights? It's like, we get it, you want to make a profit, but at what cost? 
The real victims here are leaseholders, stuck in these overpriced flats for decades with no end in sight 
. And don't even get me started on peppercorn ground rents... just another way for landlords to screw their tenants over 
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but on the other hand leaseholders have been paying insane ground rents for ages and its like they're being ripped off financially too im not a fan of peppercorn rents tho - seems like a cop out to me why cant we just make it 0 lol i hope the gov actually pushes through with these reforms tho we need more affordable housing in this country 
... what about the real concerns like abolishing forfeiture and giving building owners control over budgets? 
seems like we're getting a watered-down version of reforms... need to see more transparency and accountability 
. It's all about striking a balance between business interests and the needs of regular people 
Maybe a blended model would be better? But overall, I think leaseholders deserve some relief and fair treatment. It's time for the government to step in and make some changes! 
It's like they're trying to drag their feet on this one. The freeholders are already getting worried about the impact on their business models... I feel for them, but leaseholders need some relief ASAP 
. I think we need a more balanced approach – give building owners some control, but also make sure leaseholders have a say too 
and whats up with the 40 year thing tho? cant we just make it so lease rents decrease over time instead of having this whole cap thing 
. The government's at it again, introducing a cap but only after 40 years? That's like saying "trust us" 
. They want us to believe that landlords are just innocent victims here 
. But I'm not buying it 
. And don't even get me started on commonhold - sounds like just another way to further their agenda 
but let's be real, it's gonna take a looong time to see any real change 
. It's gotta be a balanced approach or else we'll just end up with another system that's even worse than the one we've got now 
.
And what's the alternative? Free market? Because that'd just drive up prices even more 
and I'm just over here like... yeah no thanks, just give me the bloody salad already 
.