PARLIAMENTARY WRITTEN QUESTION
Ground Rent (4 June 2021)

To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department is taking to prevent leasehold management companies from imposing five year ground rent review periods which limits the owner's ability to secure a mortgage.

Asked by:
Darren Jones (Labour)

The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are therefore taking forward a comprehensive programme of reform to end unfair practices in the leasehold market.

We know that high or increasing ground rents are a cause of considerable concern to affected leaseholders. We introduced the Leasehold Reform (Ground Rents) Bill into Parliament last month, which will prevent landlords from including a financial ground rent in new leases.

We also asked the Competition and Markets Authority (CMA) to investigate potential mis-selling of homes and unfair terms (such as high and increasing ground rents) in the leasehold sector. On 19 March 2021, the CMA announced that it is requiring the removal of ground rent terms which it thinks are unfair from all existing Countryside and Taylor Wimpey contracts. The companies must also agree not to use the terms again in any future leasehold contracts. The Government strongly welcomes the CMA's efforts to bring justice to homeowners affected by unfair practices and continues to keep a close eye on the CMA investigation. We will consider any next steps once the CMA have progressed their enforcement action.

Answered by:
Eddie Hughes (Conservative)
14 June 2021