Bishop & Sewell

MHCLG, the Ministry of Housing Communities and Local Government, has announced a technical consultation on implementing one of the reforms suggested in the government White Paper Tackling Unfair Practices in the Leasehold Market.

The MHCLG consultation runs for 6 weeks and seeks to cover the proposed restrictions to be placed on ground rents in new leases – the suggestion is that these are capped at £10 and the proposed ban on creating new leasehold houses.

For further information on this see:


Mark Chick commented as follows: “This is the next step towards the implementation of the Government’s plans outlined in the ‘Tackling Unfair Practices in the Leasehold Market Consultation’ from earlier on in the year. The suggestion of a cap on ground rents will be welcomed by those who have suffered the issues created by the so-called ‘leasehold scandal’ but will not be popular with investors or pension funds who look for long term stable income from property. The suggested ban on creating leasehold houses is a laudable objective, but there are going to be situations where for technical reasons some kind of overlap or shared structure may well mean that a leasehold house is necessary. This coupled with the Law Commission’s look into leasehold enfranchisement shows evidence of the Government’s ongoing commitment to reform in this area. I and other practitioners will be commenting in detail over the coming weeks.”

For more information, please contact our expert Landlord & Tenant team on or call 020 7631 4141.

Mark Chick Senior Partner   +44 (0)20 7079 2415

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