Starmer ignores property investors’ protests and commits to capping leasehold ground rents at £250 – UK politics live

Decision to cap leaseholders’ ground rent also seen as a win for former deputy PM Angela RaynerGood morning. At 7am Keir Starmer announced a decision that will benefit millions of leaseholders. Ground rents are being capped at £250, which means that anyone paying more than that will save money. Perhaps more significantly, this will protect leaseholders living in properties where ground rent charges soar over time, making their homes hard to sell. The proposal is in a draft commonhold and leasehold reform bill.While this may sound like a cost of living policy announcement of no particular interest to people who are not leaseholders, it is actually quite an important revealed preference moment for the Guardian. This announcement has been held up for months and months because of lobbying from the financial sector (channelled through the Treasury), who have argued that capping ground rents will hammer property investors, and even the pension funds that have money tied up in this sector. There have been been threats of legal action over the retrospective element of this legislation (which will apply to existing ground rent agreements, not just new ones). In a Guardian article about this last week, Angela Rayner, the former deputy PM and former housing secretary, said:If Labour cannot fix such an obvious injustice and show families whose living standards have been crushed that we will fight for them, then we shouldn’t be surprised if they lose faith that anything can change.This battle is a symbol of so much more. It is about whose side we are on, and who we are in government to fight for.If you own a flat you can be forced to pay ground rents that can become completely unaffordable. We said we’d be on the side of leaseholders – which is why today we are capping ground rent – helping millions of leaseholders by saving them money and giving them control over their home.The leasehold system has tainted the dream of home ownership for so many. We are taking action where others have failed –strengthening home ownership and calling time on leasehold for good. Continue reading...