LANDLORD Chancellor Jeremy Hunt has u-turned sitting out decisions on ground rents, The Sun can reveal.
The multi-millionaire was today accused of a “conflict of interest” after the Treasury blocked Michael Gove‘s plans to immediately cap annual rates at £250 a year.
Mr Hunt owns a property holding company, seven residential apartments and a commercial office building.
In November 2023 he recused himself from discussions around the Leasehold and Freehold Reform Bill for ethical reasons.
Leasehold reform, a Tory manifesto commitment, was left with Economic Secretary to the Treasury Bim Afolami.
But now the Chancellor has quietly re-joined negotiations after being given the greenlight by his private office.
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The Sun understands the Treasury has been fiercely pushing back against Mr Gove’s desire to immediately shrink all ground rents to a peppercorn rate – or at least introduce a £250 cap.
Treasury ministers and officials claim an immediate change would panic pension fund markets and damage the economy.
A Whitehall source said: “Frankly it stinks that the Chancellor is conspiring to water down a cap on rip off ground rents for leaseholders while possibly benefitting from ground rent income himself through his property empire.
“Officials are baffled that the Permanent Secretary has apparently crumbled under political pressure over this blatant conflict of interest.”
An official added: “It seems the Tories have a death wish.
“Siding with out of touch fund managers over five million leaseholders is a gift to the opposition.”
A source close to the Housing Secretary said: “Michael is working closely with colleagues in the Treasury to cap unfair ground rents and deliver the most significant changes to the leasehold system in a generation.
“This will make a big difference for millions of leaseholders – cutting costs and making the system fairer. This forms a key part of our long term plan for housing.”
Leasehold homeowners are often stung with excessive annual bills to rent the ground their property is built on and in some cases these fees are making homes unsellable and un-mortgageable.
Leaseholders also often have to stump up for high service charges and one-off bills, which often exceed the actual cost of the work.
Other issues include homeowners being unable to carry out work on their property and unreasonable prices being charged to extend leases.
In the 2019 general election campaign Boris Johnson pledged to end Britain’s “feudal” leasehold system once and for all.
A Treasury spokesperson said: “The Chancellor has made all the necessary declarations and taken advice from the department throughout, and acted in line with that advice.”
