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flag UK to cap ground rents at £250, phase to zero in 40 years, ban new leasehold flats.

flag In England and Wales, ground rents will be capped at £250 per year under new leasehold reforms announced by the UK government. flag After 40 years, the fee will be zero. flag The amendments, which are included in the draft Commonhold and Leasehold Reform Bill, prohibit the construction of new leasehold apartments, permit current leaseholders to convert to commonhold, and do away with forfeiture for minor debts. flag According to Prime Minister Keir Starmer, the action aims to shield millions of homeowners from rising costs while addressing the cost of living crisis and fulfilling a Labour manifesto pledge. flag Although the government maintains that the reforms ensure fairness and long-term stability, the legislation, which is anticipated to go into effect by late 2028, has drawn criticism from some investors and industry groups worried about its effects on property rights and investment.

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