UK to Slash Ground Rents to Just £250 a Year

The UK government will cap ground rents for millions of homeowners at £250 per year. This fulfills a key election promise from the Labour Party. The decision followed a debate within the new government. Prime Minister Sir Keir Starmer overruled Chancellor Rachel Reeves to implement the policy. Ground rent is a yearly fee paid by leaseholders to the owner of the land, known as the freeholder. Leaseholders own their property but not the land it sits on. The new cap will apply to both new and existing leases. It aims to protect homeowners from high and rising charges. This move is expected to significantly reduce housing costs for many leaseholders across the country.