The UK Government announced major reforms to shake up the leasehold system in England and Wales. Prime Minister Sir Keir Starmer unveiled sweeping changes that will cap ground rents at £250 annually and ban new leasehold flats entirely. The reforms, which Starmer announced via a TikTok video, give homeowners greater control and save leaseholders hundreds of pounds.
What's changing
The government introduced the draft Leasehold and Commonhold Reform Bill on Tuesday. It includes the £250 ground rent cap for existing leaseholders. The government will also ban the creation of new leasehold flats. Existing leaseholders will gain the right to switch to commonhold ownership.
Why it matters
Starmer framed the reforms as a direct response to the cost of living. "I've spoken to so many people who say this will make a difference to them worth hundreds of pounds," he said in the TikTok video. "That's really important because the cost of living is the single most important thing across the country."
The reforms aim to provide homeowners with greater control over their properties.
Note: This article was created with Artificial Intelligence (AI).
