New rules coming into force to help homeowners save hundreds on their property bills
25.04.2022 - 16:15
/ manchestereveningnews.co.uk
New rules are coming into force later this year for anyone looking to buy a home in England and Wales. Under a new government law, future homebuyers are set to be freed from paying expensive ground rent bills, which will help to reduce some of the costs that come with buying a home.
Landlords will be banned from charging ground rent on most new residential leases from June 30 as part of the government's reform package pledged to create a fairer housing system and level up opportunities for more people. They say it will 'make home ownership more for the next generation of homebuyers'.
The ban will put an end to increasing annual ground rent costs which will reduce prospective property bills for any homebuyers purchasing a home later this year.
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The government says it is taking action to rid future homeowners of annual charges known as ground rent, which can often cost hundreds of pounds a year. These charges provide no clear service in return and can escalate regularly, with a significant financial burden for leaseholders.
From 30 June 2022, anyone buying a home on a new long lease will now be freed of these annual costs. The new law aims to lead to a 'fairer, more transparent homeownership for thousands of homebuyers', according to the Department for Levelling Up, Housing and Communities.
In preparation for the new rules, many landlords have already reduced ground rent to zero for homebuyers starting a new lease with them. Anyone preparing to sign a new lease on a home in the next two months should speak to their landlord to ensure their ground rent rate reflects the upcoming changes.
Leasehold Minister, Lord
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