Leasehold Reforms Become Law Without Ground Rent Cap
Reforms to leasehold and freehold properties in England and Wales have become law, making it easier and cheaper to extend leases and buy freeholds. However, the promised cap on ground rents was dropped from the final legislation, leading to significant disappointment among leaseholders. Labour has vowed to continue efforts to end the leasehold system, while conservative peers criticized the rushed process.
Reforms to leasehold and freehold properties in England and Wales have been enacted into law, aiming to make it more affordable and straightforward for people to extend their lease, buy their freehold, and manage their buildings.
However, the anticipated cap on ground rents at two hundred fifty pounds or their removal entirely for existing leaseholders did not make it into the final law.
This occurred as the Leasehold and Freehold Reform bill was expedited through Parliament before shutting down for the 4 July general election.
Despite Levelling Up Secretary Michael Gove's initial intention to cap ground rents, the measure was discarded at the last minute.
This has led to significant disappointment among leaseholders facing high ground rent charges.
Labour has committed to continuing efforts to overhaul the leasehold system, while conservative peers have criticized the rushed nature of the legislation.
However, the anticipated cap on ground rents at two hundred fifty pounds or their removal entirely for existing leaseholders did not make it into the final law.
This occurred as the Leasehold and Freehold Reform bill was expedited through Parliament before shutting down for the 4 July general election.
Despite Levelling Up Secretary Michael Gove's initial intention to cap ground rents, the measure was discarded at the last minute.
This has led to significant disappointment among leaseholders facing high ground rent charges.
Labour has committed to continuing efforts to overhaul the leasehold system, while conservative peers have criticized the rushed nature of the legislation.