To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the potential impact of capping existing ground rents (a) to a peppercorn, (b) to £250 per annum and (c) in another way on the operation of (i) pension funds and (ii) financial markets.

To ask the Secretary of State for Levelling Up, Housing and Communities, what estimate he has made of the potential impact of capping ground rent to (a) a peppercorn and (b) £250 on the returns of UK pension funds.

The Government’s consultation on restricting ground rents for existing leases ran from 8 December to 17 January.

Whilst we will publish a full response shortly, we can confirm that the general response to the consultation has confirmed that ground rents represent, at most, a small percentage of total UK pension assets. In addition, no substantive evidence has been provided within the consultation that suggests that there is a systemic risk to the operation of pension funds or the financial markets. Even the sector itself, in its so-called “option 6” alternative, has recognised the necessity of reform in this policy area.

Having concluded the consultation and reviewed the responses provided, we intend to set out the future proposed approach in this policy area shortly.