Hugh Grosvenor, the 7th Duke of Westminster and godfather to Prince George, has privately lobbied Chancellor Rachel Reeves over proposed leasehold reforms, warning that ground rent restrictions could trigger a 'sudden collapse' in professional property ownership. The billionaire property magnate's company, Grosvenor Property UK, joined 12 other institutional investors and industry bodies in a letter to the Treasury obtained by The Times under information laws.
Leasehold Reform Concerns
The letter, also copied to senior Treasury figures including Chief Secretary Lucy Rigby and Investment Minister Lord Stockwood, argued that severe reductions in ground rents would lead to fewer new-build flats, reduced mortgage lending, and falling property values. The signatories—including the Residential Freehold Association, Wallace Estates, the British Property Federation, and Arc Time Freehold Income Fund—stated the plans stand in 'direct contradiction' to the Government's target to build 1.5 million new homes.
They cautioned that altering existing legal contracts would introduce 'political risk' into investment portfolios, potentially affecting pension holders. The letter noted: 'Official government estimates have totalled investments at over £27 billion and we fear this legal risk has not been sufficiently understood by MHCLG.'
Government Response
The correspondence reached Reeves shortly before ministers announced plans to cap ground rents at £250 a year for existing properties in England and Wales, phasing out to a nominal 'peppercorn' after 40 years. Florence Eshalomi, Labour chairwoman of the housing select committee, criticised the private lobbying: 'It is noticeable from this letter to the Treasury that there was an eagerness from investors and freeholders to lobby privately on these issues rather than expose their arguments to more public scrutiny.'
A Government spokesman defended the reforms, stating they strike 'a fair balance' and that 'far too many people have fallen victim to the feudal leasehold system across the country. That is why we are taking action to end it for good.'
The Duke of Westminster
Hugh Grosvenor, 35, inherited his title and an estimated £10 billion fortune at age 25 after his father's sudden death in 2016. He is one of the few people to maintain strong friendships with both Prince William and Prince Harry and is godfather to Prince George, 12, and Prince Archie, seven. His wealth is built on the Grosvenor Group, which owns roughly 300 acres of prime London land including Mayfair and Belgravia. He married Olivia Henson in June 2024, and the couple welcomed a daughter, Cosima Florence, in July 2025.
