UK Property

Labour considers watering down £250 ground rent cap


Katie Kendrick, of the National Leasehold Campaign (NLC), said: “The NLC is very concerned the Government wants to consult on an issue which potentially impacts less than 1pc of leaseholders rather than focus on dealing with the issues which affect 99pc of the sector.”

Harry Scoffin, of campaign group Free Leaseholders, said: “This sneaky call for evidence is the final insult to leaseholders from the Starmer Government.

“If introduced, a ‘quid pro quo’ leases exemption would not only nobble the proposed £250 ground rent cap but also blow up enfranchisement measures in the Leasehold and Freehold Reform Act 2024, rolling the clock back to before even the more limited Conservative ground rent reforms.

“The Government is consulting on a made-up issue that vested interests are weaponising to block real reforms.”

James Carpenter, of Forsters law firm, added that a blunt cap could undermine previous landlord-tenant agreements to the significant financial detriment of the freeholder.

“However, too much complexity could leave a chink in the armour of the ground rent cap which could open the door for potential abuse,” he explained.

The consultation on quid pro quo leases will run until Aug 27.



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