Limiting a ground rents ban to new-builds seems oddly aimed at housebuilders, who for the most part have modified their practice on this anyway, argues Linda Kirk
The practice of doubling ground rents and the need for more strident leasehold reform have been the two main drivers behind the government’s Leasehold Reform Bill. Yet, in its current form, the bill does little to rectify the main issues at play. Instead, it puts a misplaced focus on developers and their future actions.
The provision within the current draft of the legislation to remove ground rents from only future leasehold houses is an erroneous restriction. With many large developers having already announced the end of ground rents on their new leasehold houses, it seems rather odd that the government is choosing to focus on new-builds. Energy would be better spent addressing the concerns of existing leaseholders. So, what might be the knock-on effects of this bill on property developers?
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