Keir Starmer declares large change in enhance to leaseholders – see for those who’re affected

Keir Starmer has this morning announced a cap on ground rents in a huge boost to leaseholders.

The Prime Minister took to TikTok to unveil the change, which will affect millions of families. He said it is a much-needed shakeup of the outdated leasehold system.

Mr Starmer said: “Good news for homeowners, we’re capping ground rent at £250. That means if you are a leaseholder, and your ground rent is more than £250, you’ll be paying less.

“I’ve spoken to so many people who say this will make a difference to them worth hundreds of pounds. That’s really important because the cost of living is the single most important thing across the country.

“So this is a promise that we said we’d deliver and I’m really pleased that we’re delivering on that promise.” The Goverment confirmed that ground rents will be capped at £250 a year, and after 40 years this will change to a peppercorn cap.

New leasehold flats will also be banned. In a statement the Ministry of Housing, Communities and Local Government said it “calls an end to the feudal leasehold system which dates to medieval times”.

It is the first time a British PM has made a major government announcement on TikTok. In its general election manifesto, Labour pledged to “tackle unregulated and unaffordable ground rent charges”. Former Housing Secretary Angela Rayner called on the Government to stick to this pledge.

Although ground rents were abolished for the majority of new residential leasehold properties in England and Wales in 2022, this remains in place for existing leasehold homes. According to the English Housing Survey, in 2023/24, leasehold owner-occupiers paid a median annual ground rent of £120 a year.