Prime Minister Announces Ground Rent Cap in Major Policy Shift
In a significant move for homeowners across the nation, Prime Minister Keir Starmer has announced a cap on ground rents, setting the maximum annual charge at £250. This policy shift, unveiled via a TikTok video this morning, represents a substantial boost for leaseholders and fulfills a key Labour manifesto pledge.
Historic Announcement on Social Media Platform
Marking a historic first for British politics, Keir Starmer chose the social media platform TikTok to make this major government announcement. The Prime Minister directly addressed the nation through this digital medium, stating: "Good news for homeowners, we're capping ground rent at £250. That means if you are a leaseholder, and your ground rent is more than £250, you'll be paying less."
This innovative approach to policy communication underscores the government's commitment to reaching citizens through contemporary channels while addressing pressing economic concerns.
Addressing the Cost of Living Crisis
The Prime Minister emphasized the policy's significance within the broader context of the ongoing cost of living challenges facing households nationwide. "I've spoken to so many people who say this will make a difference to them worth hundreds of pounds," Starmer remarked. "That's really important because the cost of living is the single most important thing across the country."
This ground rent cap directly responds to Labour's election manifesto commitment to "tackle unregulated and unaffordable ground rent charges," a pledge that former Housing Secretary Angela Rayner had previously urged the government to honor.
Impact on Existing Leasehold Properties
While ground rents were abolished for most new residential leasehold properties in England and Wales back in 2022, this new cap specifically addresses the situation for existing leasehold homes. According to the most recent English Housing Survey data from 2023/24, leasehold owner-occupiers paid a median annual ground rent of £120.
The policy is expected to affect approximately five million people across the country, providing financial relief to those facing higher ground rent charges. Starmer expressed his satisfaction with delivering on this commitment, stating: "So this is a promise that we said we'd deliver and I'm really pleased that we're delivering on that promise."
This announcement represents a significant development in housing policy, demonstrating the government's focus on practical measures to alleviate financial pressures on homeowners while utilizing modern communication strategies to engage with the public.
