How The Ground Rent Cap Is Saving London Families £150

With an ongoing housing crisis growing year-on-year, rising prices have only served to burden many first-time buyers, would be first time buyers, and those in the private rental sector.

That is why it is great news to see the government capping ground rents.

Most leaseholders have reported paying an average of £400 each year for these charges.

By limiting these payments to just £250, this will mean an extra £150 in the pockets of families per year.

This is just one of the many steps aimed at easing financial pressures on Londoners. Policies such as this, that put money back into people’s pockets, signal a sure sign of progress.

Freezing ground rents highlights a wider issue currently facing London’s housing sector.

Along with rising rents, I have spoken with many residents regarding concern for the increased costs of their living arrangements. In particular, service charges and management fees are steadily increasing, imposing a growing financial strain.

Anne Clarke has talked with residents about the rising costs of their living arrangements (Image: Anne Clarke AM)

This means that some housing associations have been increasing prices to cover their own rising costs, leaving tenants to foot the bill.

This is not an isolated issue for Camden. Housing association tenants from across London reporting similar problems with housing associations being unresponsive, slow to make repairs and increasing service charges and rents without corresponding improvements.

I am raising these concerns directly with housing associations, including some of the largest operating in London.

With the current state of the private rental sector leaving many already financially stretched, these high charges punish already struggling families.

Housing associations are key to providing secure, quality homes. But they must make sure that residents are not unfairly burdened by these payments, with any increases being justified and clearly explained to those affected.

During the current housing and cost-of-living crises, there is a responsibility on these companies to ensure that prices for residents do not grow to unstable levels.