UK to cap ground rents at £250 under sweeping overhaul

• The government has announced sweeping reforms to the leasehold system in England and Wales, including capping ground rents at £250 per year.
• New leasehold flats will be banned, and existing leaseholders will gain the right to switch to commonhold ownership under the new proposals.
• Prime Minister Sir Keir Starmer announced the changes via a TikTok video, highlighting their potential to save people hundreds of pounds amid the cost of living crisis.
• Housing Secretary Steve Reed confirmed the government's commitment to a comprehensive reform aimed at eventually abolishing the leasehold system entirely.
• The Residential Freehold Association (RFA) criticised the ground rent cap as "wholly unjustified," warning it would damage investor confidence and property rights in the UK.

IN FULL

Ground rents to be capped under Labour’s leasehold shake-up