Real estate expert Nick Millican talks concerning the UK´s housing market current trends. He explains how Gove’s (secretary of state for leveling up, housing, and communities) move to do away with ground rent for leaseholders was blocked by Sunak and Hunt. 

His idea of helping the leaseholders who have to deal with high-ground rent might not come to fruition. Also, the government will likely block his plan to legislate strict regulations for ground rent. In his efforts to get a lasting solution, Nick Millican adds, Gove has been negotiating with the involved parties to try and establish suitable limits to cap ground rent. 

Over 10 million people in the UK live in leasehold houses, but they don’t own the right for the ground on which they are built. According to Nick Millican, the ground rent keeps changing over the years.

In addition, the leaseholders have to pay service fees to the management companies, failure to which their homes can be seized. Nick Millican shares that the majority of the leaseholders are helpless since the ground rent keeps increasing because there are no regulations. 

The freeholders use the opportunity to earn from the leaseholders who remain customers in their property. A leaseholder must pay ground rent to the freeholder, but they don’t benefit from it. Nick Millican finally states how even though the regulations would make the leasehold a less attractive investment, it would also give leaseholders a chance to own property.