City businesses have expressed worries about Labour leader Sir Keir Starmer’s proposal to limit ground rents for leaseholders to £250 annually. The plan aims to make housing costs more affordable but has prompted caution from industry experts about its potential impact.
Critics argue that the cap could have significant consequences for pension funds and investment returns linked to ground rent income. They urge careful consideration of the wider financial effects before implementing the policy.
**Why this matters**
Ground rents provide a steady income stream for some investors, including pension schemes. A sudden reduction or cap could affect the value of these investments, potentially influencing pension payouts. Understanding these implications is important for balancing housing affordability with financial stability.
Source: News Source