Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Draft Bill Suggests Major Changes to Ground Rent Rules
A draft Commonhold and Leasehold Reform Bill proposes that most existing long residential ground rents would be capped at £250 per year. According to Property118, the cap would then be reduced to a peppercorn after 40 years.
This proposal is part of a wider programme of change related to ground rent reform. The report notes that reform of ground rents is widely considered overdue.
Letting agents and inventory clerks should be aware of these proposed changes, as they may affect leasehold management and rental agreements in the future.
Source: Property118