Mike Reader has welcomed the Labour Government’s announcement that ground rents will be capped at £250 a year, calling it a “long overdue step that will make a real difference to leaseholders in Northampton.”
The Prime Minister Keir Starmer and the Secretary of State for Housing, Communities and Local Government, Steve Reed, confirmed the cap as part of a wider package of measures.
Mike Reader said the change will bring relief to families who have faced unfair and escalating charges for years.
“Many people have spoken to me about how they feel ripped off by the current system. This cap will save some families hundreds of pounds a year and finally puts an end to one of the worst injustices in the leasehold system.”
The MP also welcomed the Government’s commitment to ban new leasehold flats, delivering on Labour’s manifesto pledge to bring to an end the outdated leasehold model.
“This important action to support leaseholders with the cost of living comes after years of inaction and neglect from the Conservatives. Meanwhile, the Green Party didn’t even mention Leasehold in their manifesto. This is change that only a Labour Government can bring about.”
Alongside the cap, the Government has published the draft Commonhold and Leasehold Reform Bill, which will strengthen the rights and protections of more than five million leaseholders. The Moving to Commonhold consultation has also opened, giving people the chance to shape the next phase of reform.
The announcement also builds on the recently passed Renters Rights Act and Labour’s landmark planning reforms, aimed at ensuring everyone has a safe and secure home.
Prime Minister Keir 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.
“And I’ve spoken to so many people who say this will make a difference to them of 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.”
Secretary of State for Housing, Communities and Local Government Steve Reed said:
“If you own a flat you can be forced to pay ground rents that can become completely unaffordable. We said we’d be on the side of leaseholders – which is why today we are capping ground rent – helping millions of leaseholders by saving them money and giving them control over their home.
“The leasehold system has tainted the dream of home ownership for so many. We are taking action where others have failed – strengthening home ownership and calling time on leasehold for good.”
