UK to cap ground rents in property overhaul

Britain will cap ground rents at 250 pounds a year in an overhaul of its antiquated property system, Prime Minister Keir Starmer said on Tuesday, adding it would ease financial strain on millions of households.



Starmer's Labour Party promised in its 2024 election manifesto to tackle unregulated and unaffordable ground rent charges for those living in leasehold properties, a commitment he said had now been fulfilled.



In Britain, homes are generally sold as either freehold, where the owner controls the property and the land it sits on, or leasehold, where the buyer owns only the right to occupy a home while paying charges such as ground rent to the freeholder.



The structure means millions of people do not own the land beneath their homes and can face rising fees or restrictions imposed by landlords.



The move is likely to reassure lawmakers on the left of Starmer's Labour Party after a plunge in support following its 2024 landslide victory, and as its members are divided over how to regain voter confidence.