PARLIAMENTARY WRITTEN QUESTION
Leasehold: Ground Rent (8 June 2022)

To ask the Secretary of State for Levelling Up, Housing and Communities, with reference to the provisions of the Leasehold Reform (Ground Rent) Act 2022, if her will make an assessment of the potential merits of extending restricting ground rents charges to new leaseholders to include existing leaseholders.

Asked by:
Helen Morgan (Liberal Democrat)

The Government is committed to creating a fair and just housing system that works for everyone and to delivering the second phase of our major two-part leasehold reform within this Parliament.

We have already taken action to end unfair practices in the leasehold market, beginning with the Leasehold Reform (Ground Rent) Act 2022 Act, which will come into force on 30 June. The Act will make homeownership fairer and more transparent for thousands of future leaseholders, by preventing landlords under new residential long leases from requiring a leaseholder to pay a financial ground rent.

We understand the difficulties some existing leaseholders face with high and escalating ground rents. In this Parliament our reforms will supercharge leaseholders' ability to buy their freehold, helping 4.6 million households genuinely to own their own home with significant discounts for those trapped with egregious, escalating ground rents.

Unfair practices have no place in the housing market. This is why we asked the Competition and Markets Authority (CMA) to investigate potential mis-selling of homes and unfair terms in the leasehold sector. The Government has welcomed the action to tackle potential mis-selling and unfair terms in the leasehold sector and wants to see homeowners who have been affected obtain the justice and redress they deserve.

Answered by:
Eddie Hughes (Conservative)
15 June 2022