The government has introduced a cap on ground rents, limiting them to £250 per year for new leases. While this move has been praised by many leaseholders, some individuals who experienced significant rent hikes before the cap was announced feel the measure does not address their situations.
One leaseholder reported their ground rent increased by 9,000% after purchasing their flat, highlighting ongoing challenges for those with existing leases. Critics argue that further action is needed to protect current leaseholders from excessive charges.
**Why this matters**
Ground rents are fees paid by leaseholders to freeholders, often causing financial strain when increased sharply. The new cap aims to prevent unreasonable rises on future leases, but thousands of current leaseholders remain vulnerable to high charges. Addressing these existing cases is important to ensure fair treatment and financial security for all leaseholders.