Leaseholders will continue to pay annual ground rent capped at £250 for up to 20 years in an amendment to the Leasehold and Freehold Reform Bill set to be announced this week.   Housing secretary Michael Gove has been forced to water down the reforms in the Bill following resistance from the Treasury, according to a
  • ᴇᴍᴘᴇʀᴏʀ 帝@feddit.ukEnglish
    3·
    1 year ago

    Last year Gove called the leasehold system a “feudal system that needs to go”.

    However, the Treasury has come under pressure from pension and insurance funds, to argue that this policy should be watered down.

    Several funds have invested heavily in ground-rent portfolios and an internal Treasury analysis suggests that up to £37bn of investment could be wiped out, which may lead to compensation claims aimed at the government.

    • Rogue@feddit.ukEnglish
      5·
      1 year ago

      Why the fuck would investors get compensation? Isn’t the entire point of investing that your capital is at risk

      • TWeaK@feddit.ukEnglish
        3·
        1 year ago

        Exactly. The whole “privatise the profits, socialise the losses” needs to end.