Written question asked by Barry Sheerman (Labour) on Friday, 13 June 2003, in the House of Commons. It was due for an answer on Monday, 23 June 2003. It was answered by Nick Raynsford (Labour) on Monday, 23 June 2003 on behalf of the Office of the Deputy Prime Minister.

Office of the Deputy Prime Minister

Question: To ask the Deputy Prime Minister, what plans he has to protect leaseholders from bogus ground rent charges.

Answer: Mr. Sheerman: To ask the Deputy Prime Minister what plans he has to protect leaseholders from bogus ground rent charges. [120044] Mr. Raynsford: The Commonhold and Leasehold Reform Act 2002, which contains wide-ranging provisions to improve leaseholders rights, includes provisions that will protect leaseholders from ground rent abuses. These provide that a leaseholder will not be liable to pay ground rent unless the landlord has sent a written demand in a prescribed format. They also provide that the landlord cannot take forfeiture action unless a breach of the lease has been admitted, or determined by a Leasehold Valuation Tribunal. In addition, a landlord cannot take forfeiture action for amounts which are less than a sum to be prescribed by my right hon. Friend the Deputy Prime Minister-- unless the amount has been outstanding for more than a prescribed period. The Office of the Deputy Prime Minister aims to bring these provisions into force in early 2004.

Secondary information