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A 90-year-old pensioner who has paid off his mortgage is having “sleepless nights” after being hit with a “feudal” £17,000 bill for ground rent.

Derek Taylor is one of five leaseholders at Elgin House, North Herts, whose annual ground rent has risen from £25 to £2,350 – an increase of 9,000%.

The rise has been backdated to 2018, meaning he now owes £17,169 in one lump sum and is facing legal action if he does not pay.

General election latest: Look back at day two of campaigning

The case has renewed calls for the next government to abolish England’s centuries-old leasehold system, which campaigners say is “feudal” and “exploitative”.

A ground rent is a charge leaseholders have to pay so they can have a home on land they do not own and does not require a service in return.

Derek Taylor owns his home but under the leasehold system, is required to pay rent to the owner of the land it is built on
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Derek Taylor owns his home but under the leasehold system, is required to pay rent to the owner of the land it is built on

The Tories promised to effectively abolish these charges in their 2019 manifesto, but the long-awaited legislation aimed at doing this now hangs in the balance following Rishi Sunak’s decision to hold a snap general election.

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Read More: ‘Buying a flat ruined my life’: Leaseholders plead for tougher legislation

Derek, who has lived in the property for 50 years and paid off his mortgage, told Sky News: “We were asked to send £17,000 plus pounds and about a fortnight later we got a letter saying this amount is outstanding and if it’s not paid in five days, we have no course but to take you to court.

“That caused a lot of upset because who can simply pay that amount of money?

“The letter upset me because it was very threatening. You wake up in the night and can’t get to sleep again because it’s on your mind.”

The letter was sent to Derek by solicitors Salter Rex on behalf of the freeholder Quadron. They did not respond to a request for comment.

‘Let down by government’

The ground rent for these properties is now over £2,000 a year
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The ground rent for these properties is now over £2,000 a year

It said £17,169 is outstanding on his account and if he does not pay “we will have no alternative but to commence legal proceedings”. It added that a £120 administration fee will be charged on top of that if no money is paid within five days.

The ground rent increase is allowed under the terms of Derek’s lease, drawn up in the 1960s, which said the fee could be reviewed in March 2018 and every 50 years after in line with the annual value of the land.

Derek and his neighbours, who were not aware of the clause, took the case to arbitration but it was ruled that the rise was allowed and the lease agreement “includes no requirement for the level of rent to be “reasonable”.

Derek, a former print worker, said: “It’s simply because they can. Legally that may be so but whatever way you look at it we can’t see that this is fair.

“We feel let down (by the government). This has been going on so long, it should have been sorted out a long time ago and when this bill does eventually get passed we don’t know if it will apply to our situation at all.”

Derek is due to meet his local MP Bim Afolami, who is also the economic minister, next week to discuss the issue.

In a newsletter to constituents seen by Sky News, Mr Afolami said he was aware of the situation and the government is “committed to removing these terrible practices”.

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Labour’s Barry Gardiner says leaseholders face ‘exorbitant’ ground rents for ‘no service’

‘Leaseholders in limbo’

At the last election in 2019, the Tories promised to reduce ground rent to a zero “peppercorn” rate.

But the Leasehold and Freehold Reform Bill, which was meant to be the mechanism for doing this, was only introduced to the House of Commons in November last year and is yet to be given Royal Assent.

The policy will be considered in the House of Lords later as part of the “wash-up” period, when the final bills that will become law are rushed through parliament before it is dissolved for an election.

The National Leasehold Campaign (NLC) has welcomed this news, amid fears the bill would be killed, but said the “devil is in the detail” as it is not clear if a cap on ground rents will be included in the final draft of the legislation.

This was due to be added to the bill as an amendment, but there have been reports for months that the Treasury wants to block the policy because it is worried about spooking insurers and pension funds that have amassed vast freehold portfolios.

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Katie Kendrick, co-founder of the NLC told Sky News: “Leaseholders remain in a state of ‘Leasehold Limbo’ wondering if they will be helped by this bill.

“It remains to be seen how far this bill will go but rest assured that there will still be some way to go to achieve our goal of abolishing Leasehold and a move to Commonhold.

“Abolishing the medieval leasehold system must be in all manifestos and any incoming government must prioritise this.”

Where do the parties stand on leasehold reform?

The issue could be a dividing line in the general election campaign, amid a wider housing crisis which at its heart is a problem of insufficient supply and spiralling affordability.

Labour has said they will abolish leasehold, but recently pushed back the timeline for doing so, blaming the Tories for watering down their own proposals.

Housing Secretary Michael Gove initially said he wanted to abolish the system, calling it “feudal”, but his bill only went as far as to ban leasehold on the sale of new houses.

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Gove speaking in 2023 says he wants to abolish ‘unfair’ leasehold system

Houses make up a small portion of around five million leasehold properties across England, most of which are flats.

Other provisions of the legislation include making it cheaper and easier for people to extend their leases, buy the freehold and gain the right to manage their buildings.

But whatever measures are ultimately enacted, for some leaseholders it will be too little too late.

Freeholders ‘cashing in’

Derek’s neighbour David Pickett ended up borrowing £54,000 from family members to change the terms of his lease so that moving forward, his ground rent will be £0.

The rise in ground rent risked leaving him trapped as it significantly devalued the property he poured his savings into, putting him at risk of negative equity and reducing his chances of selling it.

David Pickett had to pay £54,000 to renegotiate his lease and remove the ground rent clause
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David Pickett had to pay £54,000 to renegotiate his lease and remove the ground rent clause

The payment included £15,000 in backdated ground rent and a £34,000 premium – a fee David says is around seven times higher than three other neighbours in identical properties who renegotiated their lease terms in 2016. They have a fixed ground rent of £100 a year and paid a premium of between £4,000 to £5,000.

However, for communications worker David that was not an option.

“Everything is done in mathematical formulas that are hard to understand, the language they use is so cold,” he said.

The 31-year-old said delays to leasehold reforms have allowed freeholders to “cash in” on people like him and Derek.

“Part of the reason we delayed to arbitration and tried to push this as far back as possible is because we thought these reforms were coming soon and when we were getting legal advice they were talking about this bill so we always had this hope.

“Now it just feels like that flame has been extinguished.

“It feels like there is nowhere to turn for help and anyone that can help wants £200 an hour.”

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Post Office: Police identify seven suspects related to Horizon scandal

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Post Office: Police identify seven suspects related to Horizon scandal

Police investigating the Horizon Post Office scandal have now identified seven suspects, with more than 45 people classed as “persons of interest”.

A “scaled-up” national team of officers has been in place for over six months as part of Operation Olympos – dedicated to looking at crimes related to the Horizon Post Office scandal.

The number of suspects has increased to seven since before Christmas, as part of a UK-wide investigation involving 100 officers.

Four have now been interviewed under caution.

Hundreds of subpostmasters were wrongfully convicted of stealing after faulty computer software created false accounting shortfalls in Post Office branches between 1999 and 2015.

Commander Stephen Clayman, Gold Command for Operation Olympos, described a “huge shift” in terms of their investigation and “significant progress”.

Commander Stephen Clayman
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Commander Stephen Clayman

“We’ve got over four million documents that are going to rise to about six million documents,” he said, “but we’re beginning to methodically work through those and looking at individuals who are associated with certain prosecutions.”

More on Post Office Scandal

He described a “pool of about 45 people plus” classed as “persons of interest”, with that number “expected to grow”.

He added that officers have questioned “some” in the past and “more recently” and are looking at the offences of perverting the course of justice and perjury.

The “wider pool” of persons of interest is made up of Post Office investigators, lawyers, and “management” across Fujitsu and the Post Office.

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Post Office knew about faulty IT system

The team of officers will be identifying actions which could amount to criminal offences on both an individual and corporate basis.

Any decisions made on whether to charge will not happen until after the Post Office inquiry findings are “published and reviewed”.

The Operation Olympos officers are part of four teams – a London hub and three regional teams – who have been described as “highly motivated” across England and Wales.

Police Scotland and the Police Service of Northern Ireland are also helping.

Cmdr Clayman said that officers “will be building a robust case” to pass on to the Crown Prosecution Service.

Operation Olympos
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Officer working in one of the four Operation Olympos teams

He also added that, compared to the inquiry, his officers will have to “prove this to the criminal standard…a much, much higher standard”.

He described feeling “optimistic” and “confident” that the teams will have “some successful outcomes”, and said they are “working as hard and as quickly as (they) can”.

Teams are involved in what has been described as a “focused strategy which gets to the heart of the issues”.

Their investigations are being overseen by the National Police Chiefs’ Council and the Metropolitan Police.

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Victims have also been told that the police will not be reinvestigating every case but “taking a speculative look at cases” to focus on key people involved and evidence for prosecution.

Operation Olympos is also making use of special software to help process the amount of evidence to sift through material in relation to key events and identified cases.

Of the four suspects interviewed under caution, two were questioned in late 2021, one in late 2024 and the most recent in early 2025.

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Government to make concessions to Labour rebels over welfare reforms, Sky News understands

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Government to make concessions to Labour rebels over welfare reforms, Sky News understands

The government has made an offer to rebel Labour MPs over its controversial welfare reforms, Sky News understands.

More than 120 Labour MPs were poised to vote against the Universal Credit and Personal Independence Payment (PIP) Bill on Tuesday.

The changes come after a ring-around by cabinet ministers failed to bring rebels on side.

The bill was intended to restrict eligibility for the PIP – the main disability payment in England- and limit the sickness-related element of universal credit, to help shave £5bn off the welfare budget by 2030.

Sky News political editor Beth Rigby has heard that existing PIP claimants will be able to keep their payments, which means 370,000 people will not lose out. This will cost the government at least £1.5bn, according to the Institute for Fiscal Studies.

Sky News understands that a senior source has accepted the change, but it will be up to each individual rebel to make a decision on whether to withdraw.

The source said they think the changes are a “good package” with “generous concessions”.

Politics latest: Government to make offer to rebels

A reasoned amendment signed by 126 Labour MPs argued that disabled people had not been properly consulted and further scrutiny of the changes is needed. If passed, this would have killed the bill.

Other concessions offered by the government include allowing existing claimants to keep the health element of Universal Credit.

Sky News understands that some senior rebels are willing to accept the concessions – with one saying that “the concessions will be positively received, and I expect to vote with the government now”.

Other MPs who had not wanted to rebel were also expecting to change their votes.

However, several Labour MPs on the left of the party have gone public to say they will still oppose the government, including Diane Abbott, Richard Burgon, Nadia Whittome and Brian Leishman.

What is PIP?

The biggest shakeup to the system involved changes to PIP – money given to people, including some of whom are in work – who have extra care needs or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, such as washing and preparing food, and this influences how much they will receive.

From November 2026, people would have needed to score a minimum of four points in at least one activity to qualify for the daily living element of PIP – instead of fewer points spread across a range of tasks.

This would have impacted existing claimants as well as new ones. The government’s concessions are understood to see this change dropped for existing claimants.

Universal credit

The government intended to freeze the health element of universal credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants.

Again, it’s understood the government’s concessions mean this change now won’t apply to existing claimants.

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Child Q: Two Met Police officers committed gross misconduct over strip search of 15-year-old schoolgirl

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Child Q: Two Met Police officers committed gross misconduct over strip search of 15-year-old schoolgirl

Two Metropolitan Police officers committed gross misconduct during the strip search of a 15-year-old schoolgirl wrongly suspected of possessing cannabis, a misconduct hearing has found.

PCs Kristina Linge, Victoria Wray, and Rafal Szmydynski conducted the search of the black girl, known as Child Q, with no appropriate adult present at a school in Hackney, east London, in 2020.

Scotland Yard apologised, and the Children’s Commissioner for England, Dame Rachel de Souza, described the case as “shocking” after details of the incident emerged in 2022.

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From March 2022 – Child Q: ‘Black girls should feel safe in school’

PCs Linge, Wray and Szmydynski suspected the girl was in possession of cannabis, but the police watchdog later determined no drugs were found in her bags or outer clothing.

At a police misconduct hearing in London today, Linge and Szmydytnski were found to have committed gross misconduct. They could potentially be dismissed when the sanctions are decided.

Wray was cleared of gross misconduct, but found to have committed misconduct.

The panel found she became involved in a “situation where the decision had been decided already”.

The case of Child Q drew outrage when it first came to light in March 2022 and sparked protests.

Crowds waved banners and placards reading "protect black kids" and "shame on you"
Protesters marched from Stoke Newington Police Station to Hackney Town Hall in London
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In March 2022 crowds waved banners and placards reading ‘protect black kids’ and ‘shame on you’

The officers had been accused of treating Child Q differently due to her race, but Commander Jason Prins, chair of the misconduct panel, said: “We do not draw any inference that race was an effective cause of this incident.”

The panel found concerns about drugs and potential gang involvement were initially raised by school staff.

“Like many cases where stop and search is used, here the subject of the search was identified to police officers by other professionals rather than being by officers in the street,” Commander Prins added.

He said the problem was with the decision to conduct the strip search in the first place, finding it was “unnecessary” and “disproportionate”.

“There should never have been a strip search in these circumstances,” he said, accepting Child Q found it “humiliating and degrading”.

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The panel did not find any officer breached professional behaviour standards relating to equality and diversity, or honesty and integrity.

During the misconduct case, the three officers gave evidence, and each said they were not influenced by subconscious bias.

Luke Ponte, for Linge, said they happened to be “three immigrant officers” who were “trying to do their best to their adopted country” as they were seeking to solve a problem.

Mr Ponte said: “These officers must not bear the entire weight of Child Q where there has been wider dysfunction as to how this came about.”

Breaches of the Met’s standards of professional behaviour found to amount to gross misconduct can lead to dismissal or a final written warning, according to the Independent Office for Police Conduct (IOPC).

A fourth officer will face a disciplinary meeting at a later date relating to no appropriate adult being present during the search. This is separate from this misconduct hearing, and it’s a lower level of discipline.

Commander Kevin Southworth, on behalf of the force, said in a statement after the verdict: “The experience of Child Q should never have happened and was truly regrettable.

“We have sincerely apologised to Child Q since this incident happened. Again, I am deeply sorry to Child Q and her family for the trauma that we caused her, and the damage this incident caused to the trust and confidence Black communities across London have in our officers.

“While the officers involved did not act correctly, we acknowledge there were organisational failings. Training to our officers around strip search and the type of search carried out on Child Q was inadequate, and our oversight of the power was also severely lacking.

“This left officers, often young in service or junior in rank, making difficult decisions in complex situations with little information, support or clear resources to help their decision-making.

“What happened to Child Q was a catalyst for change, both for the Met and for policing nationally.

“While we should not have needed an incident such as Child Q to check our approach, it has absolutely led us to improving our processes and significantly reducing the number of these types of searches carried out.

“It’s crucial we get this right to ensure the impact on young people is minimised as far as possible.

“Sadly, we know there are children in London being exploited to carry drugs and weapons for others as well as involved in criminality, so these types of searches have to remain within police powers. The work we have done since Child Q means we now have the right safeguards in place.”

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