14 November 2023
On 9 November 2023 the Department for Levelling Up, Housing and Communities launched a consultation paper setting out options to cap ground rent clauses in leases.
These changes are designed to deliver on the government’s manifesto commitment to create a fairer system for millions of leaseholders.
The consultation paper outlines five options:
- Capping ground rent at a peppercorn
- Capping ground rent at an absolute maximum financial value
- Capping ground rents at a percentage of the property value
- Capping ground rent at the original amount it was when the lease was granted.
- Freezing ground rent at current levels
The deadline for responding to the consultation is 17 January 2024 at 11:59pm.
We would urge everyone interested to respond to the consultation by the deadline particularly as the government have stated they will carefully consider all responses to inform the final decision.
More information you might find useful:
