Starmer warned of mass Labour rebellion if leasehold reforms watered down

Former Labour Minister, Justin Madders, warns party must make good on its pledge to cap ground rents in much-delayed draft leasehold bill.

Sir Keir Starmer is under pressure to deliver long-promised changes to the leasehold system in England and Wales, with Labour MPs and campaigners warning that failing to cap ground rents could trigger a backlash and leave millions of homeowners facing yet more rises in their annual charges.

Former Employment Minister, Justin Madders (pictured), told the BBC Labour must stick to its pledge to cap ground rents – the annual fee leaseholders pay to their freeholder – saying the party had “a clear manifesto commitment” and warning that “a lot of backbenchers feel very strongly about this”.

During the Election, Labour promised “to tackle unregulated and unaffordable ground rent charges”, but there are concerns it may row back on a cap because of the potential impact on pension funds, which own some freehold properties.

The Government has insisted, however, that it would legislate to deliver on the pledge and would “set out further details in due course”.

I think there will be a mass rebellion”.

Ministers had, though, promised a draft bill would be published before the end of 2025, but it has been repeatedly delayed, with ground rents believed to be the cause.

Madders says capping rents at a peppercorn rate would be ideal, but adds “the risk of elongated legal challenge is quite significant”. He says he could accept a limit of £250 a year, but if there was no cap, there was “no way” the Government would be able to get the bill through Parliament and he warns “there will be a mass rebellion”.