RFA response to reports suggesting the Government plans to introduce a cap on ground rents

Responding to reports suggesting the Government plans to introduce a cap on ground rents, the RFA released the following statement:

“The RFA welcomes recent reports that the Government has abandoned plans to abolish the leasehold system in England and Wales, rightly acknowledging this was an unrealistic and unworkable proposal. Targeting leasehold does nothing to benefit existing homeowners, increase affordable housing provision, or improve the quality or cost of building safety, management and maintenance for residents. 

However, the RFA still holds significant concerns about the Government’s direction of travel on leasehold reform – with recent reports suggesting plans now include a cap on ground rents. Such proposals would not only be a totally unjustified and unlawful interference with existing property rights but would also have a negative impact on confidence and investment in the UK housing market.

The RFA remains of the view that responsible and proportionate reform of the leasehold sector is the most effective way of helping leaseholders and providing more good quality affordable and professionally managed housing. This includes using responsible freeholders’ expertise to raise standards and ensure rogue actors do not operate in the market. We urge the Government to consult with all industry stakeholders, without delay, to ensure reforms are proportionate and avoid significant unintended consequences for the sector.”