Skip to content 
Search

Latest Stories

MPs criticise freeholders for exploitative rentier structure

The scrutiny unfolded as a freeholder group resisted proposed changes to leasehold laws

MPs criticise freeholders for exploitative rentier structure

IN a parliamentary hearing on Thursday (18), MPs scrutinised freeholders for establishing a "rentier structure" in England and Wales, accusing them of imposing "exorbitant" ground rents, reaching £8,000 annually in some instances.

The scrutiny unfolded as a freeholder group resisted proposed changes to leasehold laws amidst the ongoing parliamentary examination of the government's leasehold reform bill, The Guardian reported.


The much-anticipated bill aims to simplify and reduce costs for leaseholders seeking lease extensions and acquiring freeholds. Additionally, it proposes a ban on leaseholds for newly constructed houses, excluding flats, in England and Wales.

The bill is currently in the committee scrutiny stage, with MPs from the public bill committee questioning representatives from leaseholder and freeholder groups, legal experts, and executives from the Competition and Markets Authority.

During the hearing, Jack Spearman, the head of leasehold at the Residential Freehold Association, representing freeholders for one million leasehold apartments, opposed housing secretary Michael Gove's proposals to cap ground rents on existing leases.

He expressed concerns that such caps would deter investors, citing a Savills report indicating a need for £250 billion in housing-related investments within the next seven years.

He also emphasised the importance of capital infusion into the housing sector, arguing that pension funds would be a vital source.

Labour MP Barry Gardiner, currently working on a documentary about the leasehold system, dismissed the notion that the housing market would collapse without revenue extraction from ground rents by pension funds.

Gardiner accused freeholders of creating a rentier structure over the past 15 years, extracting exorbitant revenues, some reaching £8,000 annually, without providing any services.

The Department for Levelling Up, Housing, and Communities refuted claims, stating that less than one per cent of pension fund assets were invested in residential property. Spearman acknowledged the need to address onerous and egregious ground rents but defended those that did not escalate rapidly over the years.

The government's initiative to reform leaseholds gained momentum following a scandal involving exorbitant ground rents, prompting an investigation by the Competition and Markets Authority in 2019.

Although ground rent for new leases was abolished in the summer of 2022, a substantial number of leaseholders still face significant increases in the coming years.

The proposed peppercorn cap, estimated to save leaseholders £5.1bn in ground rent over a decade, has faced opposition. The government contends that no compensation will be paid to freeholders for capping ground rents, a stance contested by the British Property Federation, raising concerns about compliance with the European Court of Human Rights and potential legal challenges.

The debate continues as MPs prepare to publish their findings on February 1.

More For You

Brothers deny assaulting police during Manchester Airport brawl

Photo for representation. (iStock)

Brothers deny assaulting police during Manchester Airport brawl

TWO brothers accused of assaulting a man inside a Starbucks and later attacking police officers at Manchester Airport are standing trial, with the prosecution arguing they used "unlawful and extreme violence".

Mohammed Fahir Amaaz, 20, and his older brother Muhammad Amaad, 26, both from Rochdale, are said to have acted aggressively on July 23 last year while at the airport to pick up their mother, who had arrived on a flight from Qatar.

Keep ReadingShow less
Court to review teen's sentence in Bhim Kohli case
Bhim Kohli

Court to review teen's sentence in Bhim Kohli case

THE seven-year prison sentence handed to a 15-year-old boy convicted of the manslaughter of 80-year-old Bhim Sen Kohli is to be reviewed under the UK’s Unduly Lenient Sentence (ULS) scheme.

The Attorney General’s Office confirmed on Friday (5) that the teenager’s sentence will now be considered by the Court of Appeal.

Keep ReadingShow less
Dalai Lama hopes to live 'beyond 130 years'

Tibetan spiritual leader the Dalai Lama attends a prayer meet held for his long life at the Dalai Lama temple in the northern hill town of Dharamshala, India, July 5, 2025. REUTERS/Anushree Fadnavis

Dalai Lama hopes to live 'beyond 130 years'

THE Dalai Lama said on Saturday (5) he hopes to live until he is more than 130 years old, two decades longer than his previous prediction, following his assurance to followers that he would reincarnate as the spiritual head of the faith upon his death.

The Nobel Peace Prize winner was speaking during a ceremony organised by his followers to offer prayers for his long life, ahead of his 90th birthday on Sunday (6), and as China insists it will choose his successor. The Dalai Lama told Reuters in December he might live to 110.

Keep ReadingShow less
UK heatwave by mid-July

Daytime temperatures meeting or exceeding set thresholds of 25°C

iStock

Met Office warns of potential third UK heatwave by mid-July

Key points

  • Met Office forecasts rising temperatures by mid-July
  • Possible third heatwave after record-breaking June
  • High pressure system likely to bring hot air from the Atlantic
  • Yellow rain warning and flood alerts issued in parts of Scotland and Cumbria

Possible heatwave to return by mid-July

The UK could experience its third heatwave in a month by mid-July, the Met Office has said. Forecasters expect rising heat and humidity during the second weekend of July, following two weekends of unusually warm weather in late June.

June was officially the hottest on record in England, and the return of high temperatures could mean another heatwave for parts of the country. However, the Met Office cautioned that it is too early to confirm how hot conditions will get.

Keep ReadingShow less
crypto

Two men have been jailed for defrauding investors of £1.5 million through a fake crypto investment scheme. (Representational image: iStock)

iStock

Two jailed over £1.5m crypto investment scam

TWO people who duped investors of £1.5 million by selling fake investments in crypto have been jailed for 12 years, the Financial Conduct Authority (FCA) said.

Raymondip Bedi, of Bromley, and Patrick Mavanga, of Peckham, conned at least 65 people by cold-calling them between February 2017 and June 2019. They operated companies including CCX Capital and Astaria Group LLP.

Keep ReadingShow less