Ground rents capped but leaseholds to stay

Plans to abolish the “feudal” system of leaseholds across England and Wales have been dropped. Michael Gove Gove, the housing secretary, will next month announce a range of measures to protect the 10m Britons who own their homes in a leasehold. The measures are expected to include a cap on ground rents, more powers for tenants to choose their own property management companies and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute. However, Mr Gove will stop short of abolishing leaseholds altogether, despite a pledge made in January to end it this year. Mr Gove wanted to replace leaseholds for flats with a “commonhold” system, but government sources say that Downing Street pushed back on Gove's plan, with the prime minister's officials arguing there would not be enough time before next year's election to enact such major reforms.

The Guardian (13/05/2023)   The Times (13/05/2023)