Stratford-on-Avon Leaseholders set to benefit from new ground rents cap
Thousands of leaseholders across Stratford-on-Avon are set to benefit from a major shake-up of the outdated leasehold system – with ground rents set to be capped at £250 a year, changing to a peppercorn cap after 40 years.
The cap will help more than 5 million households across the country, and save some families hundreds of pounds.
New leasehold flats will also be banned and homeownership strengthened thanks to groundbreaking legislation that will give people control over their homes and calls an end to the feudal leasehold system which dates to medieval times.
This move will ensure leaseholders keep more of their hard-earned cash, with many seeing savings of over £4,000 over the course of their lease, improving cost of living for millions.
Publishing the data, Labour’s Lee Rhodes said:
“This is the real change people voted for. There are thousands of families across Stratford-on-Avon living in leaseholds – and that means they have been subject to uncapped ground rents, which can be completely unaffordable.
“Labour promised we’d be on the side of leaseholders in Stratford-on-Avon and that’s exactly where we are. This government is stepping in to end a feudal system that has tainted the dream of home ownership for too many for too long, and help working people with the cost of living.”
Forfeiture, whereby leaseholders can lose their home and the equity they built up by defaulting on a debt as low as £350, will also be abolished, and a new enforcement regime will rebalance the system – making it fairer between landlord and leaseholder.
A new process to make it easier for existing leaseholders to convert to commonhold will also be introduced under a revamped commonhold model, where homeowners will receive a stake in the ownership of their buildings and be given a stronger say in the issues that affect them, with greater control over how the building is managed and the bills they pay.
The reforms build on action currently being undertaken by the government to implement the Leasehold and Freehold Reform Act 2024, including increased transparency over service charges so that leaseholders can better hold their landlords to account.
This comes as the government passed through its landmark Renters’ Rights Act, delivering the biggest boost to renters’ security and protections in a generation – ending unfair ‘no fault’ evictions, multiple rent hikes and bidding wars, and giving millions more stability and control over their homes.