Stephen Morgan MP has welcomed the Labour Government’s announcement that ground rents will be capped at £250 a year, bring relief to families who have faced unfair and escalating charges for years.
The Prime Minister Keir Starmer and the Secretary of State for Housing, Communities and Local Government, Steve Reed, confirmed the cap as part of a wider package of measures.
Mr Morgan also welcomed the Government’s commitment to ban new leasehold flats, delivering on Labour’s manifesto pledge to bring to an end the outdated leasehold model.
Alongside the cap, the Government has published the draft Commonhold and Leasehold Reform Bill, which will strengthen the rights and protections of more than five million leaseholders. The Moving to Commonhold consultation has also opened, giving people the chance to shape the next phase of reform.
The announcement also builds on the recently passed Renters Rights Act and Labour’s landmark planning reforms, aimed at ensuring everyone has a safe and secure home.
Commenting, Stephen Morgan, MP for Portsmouth South, said:
“This necessary decision marks a long overdue step that will make a real difference to Portsmouth’s leaseholders, who have been trapped in an unfair system for too long.
“Despite pledging to fix this problem in 2017, the Conservatives failed to do so. That is why Labour’s 2024 manifesto promised the very reform that has now been delivered with this Government’s recent announcement.”
Secretary of State for Housing, Communities and Local Government Steve Reed said:
“If you own a flat you can be forced to pay ground rents that can become completely unaffordable. We said we’d be on the side of leaseholders – which is why today we are capping ground rent – helping millions of leaseholders by saving them money and giving them control over their home.
“The leasehold system has tainted the dream of home ownership for so many. We are taking action where others have failed – strengthening home ownership and calling time on leasehold for good.”
