For those who are still trapped in leasehold houses with multiplying ground rents, the Act does not address what is being done to alleviate the situation.
On the whole, though, the new ground rent law has been welcomed across the industry, with many hoping that the government will continue to look at and improve the situation.
Leasehold minister Lord Stephen Greenhalgh said: “This is an important milestone in our work to fix the leasehold system and to level up home ownership.
“Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers.”
Jonathan Walker, CILEX (Chartered Institute of Legal Executives) head of policy, points out that problems still remain, with no retrospective inclusion of leasehold tenants.
“They will still be obliged to pay their existing rents, even in cases where they are seeing those rents escalate – some doubling every ten years.
“Those attempting to sell on properties will find ground rents prove unattractive to buyers who now have the option of purchasing a rent-free leasehold property, and many will experience difficulties when looking to remortgage, or extend or vary their existing leasehold.
“Such fundamental changes to the leasehold market must be implemented alongside awareness-raising and education amongst both consumers and professionals so that both understand the implications for property transactions.
“It is vital that we see a continued programme of reform that benefits those who are new to the leasehold market whilst not disadvantaging or restricting those currently within the system. We hope to see further measures to address residential leasehold houses and cap ground rent for all existing leasehold properties.”