Millions of leaseholders across England and Wales are set to benefit from a major shake-up of the outdated leasehold system – with ground rents set to be capped at £250 a year, changing to a peppercorn cap after 40 years.
Making the announcement on the 27th January, Prime Minister Keir Starmer set out how the cap will save some families hundreds of pounds as the cost of living is the single most important issue across the country and in London.
Over 11 thousand residents in Islington are leaseholders and they, along with future homeowners in the borough will benefit from the stronger control, powers and protections. The draft Commonhold and Leasehold Reform Bill, published on the 27th January will fundamentally rewire homeownership across England and Wales.
It will cap ground rent at £250 a year before ultimately reducing it to a peppercorn after 40 years – marking the end of residential leaseholders paying over the top bills for no clear service in return.
New leasehold flats will also be banned and homeownership strengthened thanks to groundbreaking legislation that will give people control over their homes and calls an end to the feudal leasehold system which dates to medieval times.
This move will ensure leaseholders keep more of their hard-earned cash, with many seeing savings of over £4,000 over the course of their lease, improving cost of living for millions. This will also unlock house sales for leaseholders whose lives have been put on hold because of ground rent terms that make their homes hard to sell.