Starmer Announces Historic Ground Rent Reform

The UK government, led by PM Keir Starmer, is capping ground rents at £250 annually in a bid to alleviate the financial burden on millions of leasehold property owners. The reform, part of Labour's 2024 manifesto, addresses unregulated charges and seeks to facilitate home sales by reducing costs.

The British government, under Prime Minister Keir Starmer, announced plans to cap ground rents at £250 per year, aiming to mitigate the financial strain on millions of households. This move fulfills the Labour Party's 2024 manifesto promise to curb unregulated and burdensome charges for leasehold property owners.

Traditionally, British homes are sold as either freehold or leasehold, with the latter subject to ground rent charges. Originating from medieval land-use fees, these rents became formalized in the 1920s, causing contemporary challenges for occupants of leased properties.

The reform targets over 5 million leaseholders in England and Wales, intending to lower ground rents to a symbolic 'peppercorn' after four decades. This change is expected to save families significant sums and ease property market transactions by eliminating prohibitive lease conditions.