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Five ground rent options being considered by government

The government is considering five different options for ground rent as the reform process for the sector begins.

The government is committed to introducing a Leasehold and Freehold Bill to end the ground rent scandals which have sometimes made it harder for owners to sell or remortgage a property.

The options - contained in a consultation paper from the Department of Levelling Up, Housing and Communities - are:


- Setting ground rents at a peppercorn;

- Putting in place a maximum financial value which ground rents could never exceed; 

- Capping ground rents at a percentage of the property value; 

- Limiting ground rent in existing leases to the original amount when the lease was granted; and

- Freezing ground rent at current levels. 

Housing Secretary Michael Gove says: “People work hard to achieve the dream of homeownership. They plan, toil, sacrifice, save and should rightly be proud to get on the housing ladder.  

“However, far too many are burdened with onerous ground rents – these punitive charges can leave some paying thousands of pounds a year for nothing in return.  

“Ground rent can feel like an annual reminder that you do not own the land your home stands on, that your lease on it is finite, and that there is a payment for the privilege of staying there.”

The public consultation will be open for six weeks and the government says it will carefully consider all responses to inform the final decision, ahead of introducing reforms through the Leasehold and Freehold Bill.

  • Barry X

    So large numbers of "...hard working people plan, toil, sacrifice, save ....to get on the housing ladder" only to discover to thier horror that unexpectedly, behind their backs, an evil landlord or freeholder (as all of us are) has somehow exploited an obscure loophole to trap them by slapping "thousands of pounds a year for nothing" in ground rent charges on thier property (that were never there before and they couldn't have known about, or been advised by their solicitor about when buying)... thus destroying their dreams "of property ownership"and wreaking their lives.... and only The Tories can now save them from their plight.. yeah, right...

    Yet more typically irrelevant, intentionally emotve "people" not factual or business focused, ignorant, "sound-byte" waffle from this ill-informed man intent on meddling with yet another thing he has no actual clue or care about.... and no doubt in the process doing yet more damage to something that wasn't neccessarily as "broken" and didn't need as much incompetant wrong-headed "fixing" as he pretended....

    I'm not sure it will be easy for them to reset or cancel existing ground rents though.... too many pension funds etc. with huge investments in ground rents (and with priced-in expectations for extentions for older ones), and incomes from them...

    So the government is offering us just six weeks to make comments they will dutifully count but of course completly ignore, on their utterly simplistic, naive and potentially damaging proposals aimed to please socialists who don't understand any of it but instinctively always feel cheated and angry about things....

    Jolly good.... keep 'em coming.... there's still plenty more damage to be done while frantically virtue-signaling to people who'll probably never vote for you anyhow!


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