Responding to reports that a future leasehold reform bill from the Government could include proposals such as capping ground rents at 0.1% of the freehold value, Mick Platt of the RFA said:
“These proposals would fundamentally undermine legitimate property rights in the UK. There is no rationale for a cap and, given that valuation is subjective, the proposal is unworkable.
Ground rents as a percentage of property values are at their lowest level in history and represent a fraction of the cost of living facing apartment owners today. By seeking to drive out freeholders the Government is piling additional costs and responsibilities onto residents by the back door.
All that these proposals would do is disrupt established property law and, in turn, international inward investment in the UK.”