Leasehold: Ground Rent

Department for Levelling Up, Housing and Communities written question – answered at on 23 May 2024.

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Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Secretary of State for Levelling Up, Housing and Communities, when he plans to publish a response to his Department's consultation entitled Modern leasehold: restricting ground rent for existing leases, published on 9 November 2023.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Secretary of State for Levelling Up, Housing and Communities, with reference to the consultation entitled Modern leasehold: restricting ground rent for existing leases, published on 9 November 2023, whether he plans to implement changes arising from that consultation in this Parliament.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will cap ground rent for existing leases at a peppercorn level.

Photo of Mike Penning Mike Penning Conservative, Hemel Hempstead

To ask the Secretary of State for Levelling Up, Housing and Communities, what steps he is taking through the Leasehold and Freehold Reform Bill to ensure that any ground rent reductions are not passed on to leaseholders by way of increased service charges.

Photo of Lee Rowley Lee Rowley Minister of State (Minister for Housing)

The Government recently consulted on a range of options to restrict ground rents for existing leases. We asked questions about the impacts of the options on different stakeholder groups and how a cap would work in practice. This included questions on how freeholders use ground rent currently, and whether there are costs that freeholders meet through ground rent which are more appropriately suited to the service charge.

We are carefully considering the responses we have received and will set out next steps in due course.

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