Leasehold: Ground Rent
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 20 October 2025 to Question 81148 on Leasehold: Ground Rent and to the Answer of 15 September 2025 to Question 74455 on Ground Rent: Newcastle upon Tyne East and Wallsend, whether his Department is taking steps to (a) identify developments where mortgage lenders are refusing to lend due to rent escalation clauses and (b) require freeholders to offer deeds of variation where leases are already inhibited by such clauses.
Answered by Matthew Pennycook
Some of the most problematic ground rent terms involving clauses doubling more quickly than every 20 years have already been subject to enforcement action by the Competition and Markets Authority (CMA) as unfair contractual terms. If leaseholders find developers and freeholders are failing to meet these binding commitments to remove ground increases and repay past ground rent increases, they should contact the CMA directly.
The government is committed to addressing unregulated and unaffordable ground rents and we will do this in legislation. We will set out further details in due course.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →