Prime Minster Sir Keir Starmer has capped ground rents at £250 a year for leaseholders in England and Wales in a bid to placate Labour MPs – despite Treasury alarm over the impact on businesses.
New leasehold flats will be banned and existing leaseholders will get the right to switch to commonhold in a bid to give homeowners greater control over their properties.
Making the major announcement in a video posted on TikTok, Prime Minister Sir Keir Starmer said: ‘I’ve spoken to so many people who say this will make a difference to them worth hundreds of pounds.
‘That’s really important because the cost of living is the single most important thing across the country.’
The reforms will be published in the draft Leasehold and Commonhold Reform Bill, which will be introduced on Tuesday.
