The government has confirmed plans to ban new leasehold flats and cap ground rents at £250 a year for existing leaseholders in England and Wales in Parliament today.
The announcement follows a meeting on Friday between Tom Hayes MP and FirstPort to discuss concerns raised by residents in Bournemouth East about repairs, service charges and management standards.
It’s said that ground rents will be capped at £250 per year, with a commitment to reduce them to a peppercorn, effectively zero, after 40 years.
Tom Hayes MP said: “Many residents feel exploited, ignored, and left out of pocket. From sky-high service charges to rat infestations and missing reserve funds, leaseholders in Bournemouth East tell me they’re being let down.
“I’ve taken their stories straight to Parliament and welcome this reform.”
In a recent parliamentary debate on estate management companies, Mr Hayes raised the case of constituents affected by the collapse of Initiative Property Management: “One constituent told me they’ve lost £80,000. Others estimate they’re losing around £1,200 a year per flat. It’s shocking, they deserve answers and protection.”