Call to cap ground rents at £10 for new leasehold homes

Annual ground rents on new leasehold properties will be capped at £10 under UK government reform proposals in response to a scandal over escalating charges.

If adopted, the cap will cut costs significantly for owners of new leasehold homes, who currently pay an average of £300 a year and sometimes as much as £700, the Ministry of Housing, Communities and Local Government said.

It will launch a leasehold reform consultation on Monday.

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