Leaseholders in England and Wales will have ground rent capped at £250 a year

The government announced a cap of £250 a year on ground rents and set out proposals to ban new leasehold flats, while giving existing leaseholders the right to switch to commonhold; the measures will appear in a draft leasehold and commonhold reform bill to be published and introduced on Tuesday.

The government announced a cap of £250 a year on ground rents for leaseholders in England and Wales and proposals to ban leaseholds for new flats. Existing leaseholders would be given the right to switch to commonhold under the proposals. The changes are set out in a draft leasehold and commonhold reform bill due to be published and introduced on Tuesday. The package also includes the abolition of forfeiture and a new enforcement regime. Key details: - Ground rents will be capped at £250 a year for leaseholders in England and Wales. - New leasehold flats will be banned and existing leaseholders will be able to switch to commonhold. - The draft leasehold and commonhold reform bill is to be published and introduced on Tuesday. - Forfeiture for small debts (reported as from £350) will be abolished and a new enforcement regime implemented. - The Residential Freehold Association described the cap as "wholly unjustified" and warned it could harm investor confidence. Summary: If enacted, the measures are presented as reducing costs for leaseholders and giving them greater control over their properties. The draft bill will be published and put out to consultation before any final changes are made. Stakeholders including the Residential Freehold Association have raised concerns about potential effects on investor confidence.