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.
Image: 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.
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.
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“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’
Image: 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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2:35
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.
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.
Image: 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.”
The family of a dog walker killed by a psychiatric patient say they have been ‘treated like dirt’ by the NHS after learning his attacker has been granted permission to leave hospital.
Lewis Stone was stabbed to death by David Fleet in a random attack in Borth, Wales, in 2019, shortly after Mr Fleet had been released into the community.
Mr Stone’s family were informed of the update to his care just hours after Sky News aired their first TV interview calling for an internal NHSTrust report into its handling of Fleet’s case to be released.
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3:11
From 10 April: Victim’s family demand answers over killer’s NHS care
Mr Stone’s stepdaughter, Vicki Lindsay, told Sky News: “As victims, we have been treated disgracefully.
“We still do not know why the killer was released 10 days before he attacked Lewis, who made that decision and why, and who is going to be held accountable for it.
“But as if all that were not bad enough, only six years on, we now get to live knowing that the killer is now allowed out at night time.”
Ms Lindsay also told Sky’s Sarah-Jane Mee that “my biggest fear is that it’s going to happen again – I can’t sleep at night thinking about other families going through what we’ve gone through”.
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Mr Fleet was sectioned under the Mental Health Act after admitting manslaughter with diminished responsibility.
He was suffering from paranoid schizophrenia at the time of the attack and told psychiatrists that if he had not stabbed Mr Stone, the voices in his head “were going to kill him”.
Image: Lewis Stone was fatally stabbed in February 2019
Patients who have committed a mental health-related homicide can be granted permission to leave their hospital under Section 17 of the Mental Health Act.
It is considered part of the patient’s rehabilitation and preparation for eventual discharge.
What has the MoJ said?
A Ministry of Justice spokesperson said: “We understand this decision will be difficult for the Stone family, and our thoughts are with them.
“Any decision to approve access to the community is only made after a thorough risk assessment and with strict safeguards in place.”
Image: Lewis Stone with his granddaughter Sammy
The Hywel Dda health board says it does not intend to release an internal report into Fleet’s care.
Sharon Daniel, the interim executive director for nursing, quality and patient experience, said: “The duty of candour for patients came into force in Wales in April 2023.
“At the time of this incident and concern, we fulfilled our duties to be open.”
A senior NHS official has called the decision not to release the internal report “callous and uncaring”. Speaking on condition of anonymity, they said: “On the face of it, this family has been failed multiple times over.
“Of course, there is a balance to be struck between the rights of the family and the rights of the person detained, but the basic lack of transparency and consideration here undermines the duty of candour.”
Freedom of Information requests made by the victim’s support organisation Hundred Families have found that nearly 400 people were killed by former mental health patients between 2018 and 2023.
However, this number is expected to be a significant underestimate as a quarter of NHS Mental Health Trusts refused to say how many of their patients went on to kill, as they don’t want to risk identifying offenders.
Julian Hendy, who founded Hundred Families, said: “Unfortunately the family of Lewis Stone is not alone. There is a terrible lack of openness and transparency and that needs to change.
“The public needs to know that mental health services are keeping people safe and learning effectively when things go wrong.
“At the moment, by failing to share information the public cannot be reassured.”
On Tuesday, Rehman pleaded guilty to causing death by dangerous driving in his Mercedes Sprinter van.
Prosecutor Rachel Shenton told Manchester Crown Court that he had visited two massage parlours in the city hours before.
She added he had taken “at least 20 lines of cocaine” in seven hours.
Judge Alan Conrad KC heard it was the prosecution’s case that Rehman’s drug consumption adversely affected his driving.
The Crown Prosecution Service (CPS) said in a statement that Rehman ignored stop signs and gave the tram driver no time to react before it struck the side of the van, which then mounted the pavement.
Abbie Clarke, senior crown prosecutor for CPS North West, said: “It is clear his driving fell far short of what is expected of a competent and careful driver.
“Rehman failed to take responsibility for his actions. He fled the scene in a taxi and denied that he drove dangerously in interview, only accepting responsibility on his third hearing before the court.
“He must now face the consequences for his role in this wholly avoidable tragedy.”
Rehman was previously jailed in 2017 for conspiracy to pervert the course of justice by burning a car involved in a fatal hit-and-run collision, which killed a 25-year-old man in Chorlton.
He has been remanded in custody until sentencing on 27 May.
Britain’s economy will be among the hardest hit by the global trade war and inflation is set to climb, the International Monetary Fund (IMF) has warned – as it slashed its UK growth forecast by a third.
In a sobering set of projections, the Washington-based organisation said it was grappling with “extremely high levels of policy uncertainty” – and the global economy would slow even if countries manage to negotiate a permanent reduction in tariffs from the US.
Echoing earlier warnings about the risks to the global financial system, the IMF said stock markets could fall even more sharply than they did in the aftermath of Donald Trump‘s “Liberation Day” tariffs announcement, when US and UK indices recorded some of their largest one-day falls since the pandemic.
It comes as Chancellor Rachel Reeves prepares to meet her US counterpart Scott Bessent at the IMF’s spring gathering in Washington this week.
She is hoping to negotiate a reduction to the 10% baseline tariff the US president has applied to all UK goods. Steel, aluminium and car exports face an additional 25% tariff.
As long as the world’s two largest economies are at war with each other, there will be considerable spillovers. The US and China account for 43% of the global economy.
If demand in either nation slows, that has ripple effects across the world. Tariff or no tariff, exporters to those markets will be hurt.
If China redirects its goods elsewhere, that could hurt domestic industries – jobs could be at stake.
US and Chinese investors might hit pause on global projects and stock market devaluations could hurt consumer confidence. Things could unravel quickly.
Against that backdrop, it is difficult to say with any certainty what would happen to the UK but, even if we find a way to sweet talk our way out of tariffs, the dark clouds of the global economy are moving in every direction.
Britain is an open and highly trade-sensitive economy (we have a trade-to-GDP ratio of around 65%) and global spillovers will rain on us.
Then there are the spillovers from the financial markets. The IMF warned that rising government borrowing costs were weighing on economic growth.
While rising UK bond yields are, in part, a reflection of investor unease over the UK’s growth and inflation outlook, they also reflect anxiety over the US trajectory.
It’s worth bearing all of this in mind if Chancellor Rachel Reeves emerges from her trip to Washington with a deal.
The Treasury would no doubt celebrate the achievement. After all, a reduction in tariffs could make a big difference to some industries, especially our car manufacturers who are currently grappling with a 25% levy on goods to their largest export market. However, it would not solve our problems.
In fact, it would barely make a difference to our overall GDP. Back in 2020, the government estimated that a free trade deal with the US would boost the UK economy by just 0.16% over the next 15 years.
And overall GDP does matter. The chancellor desperately needs economic growth to support the country’s ailing public finances (when the economy grows, so do government tax receipts).
She will know better than most that the prize the US has to offer is comparatively small, so she should weigh up the costs of any deal carefully.
The IMF presented a range of forecasts in its latest World Economic Outlook. Its main case looked at the period up to 4 April, after Mr Trump announced sweeping tariffs on countries across the world, ratcheting up US protectionism to its highest level in a century.
If the president were to revert to this policy framework, global growth would fall from 3.3% last year to 2.8% this year, before recovering to 3% in 2026.
In January, the IMF was predicting a rate of 3.3% for both years.
Nearly all countries were hit with downgrades, with the US expected to grow by just 1.8% this year, a downgrade of 0.9 percentage points.
Mexico was downgraded by 1.7 percentage points, while China and Canada are forecast to slow by 0.6 percentage points and Japan by 0.5 percentage points.
The UK economy is expected to grow by just 1.1% this year, down 0.5 percentage points from the 1.6% the IMF was predicting in January. Growth picks up to 1.4% next year, still 0.1 percentage points lower than the January forecast.
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2:22
Will tariffs hit UK growth?
Along with recent tariff announcements, the IMF blamed the UK’s poor performance on a rise in government borrowing costs, which has in part been triggered by growing unease among investors over the fate of the US economy.
When borrowing costs rise, the chancellor has to rein in public spending or raise taxes to meet her fiscal rules. That can weigh on economic growth.
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1:07
Trump: Tariffs are making US ‘rich’
It also pointed to problems in the domestic economy, mainly “weaker private consumption amid higher inflation as a result of regulated prices and energy costs”.
In a blow to the chancellor, the IMF warned that the UK would experience one of the largest upticks in inflation because of utility bill increases that took effect in April.
It upgraded its inflation forecast by 0.7 percentage points to 3.1% for 2025, taking it even higher above the Bank of England’s 2% target and deepening the dilemma for central bankers who are also grappling with weak growth.
Meanwhile, inflation in the US is likely to jump one percentage point higher than previously forecast to 3% in 2025 on the back of higher tariffs.
The IMF forecast period ended on 4 April. That was before the US president paused his reciprocal tariffs on countries across the world while ratcheting up levies on China.
In a worrying sign for finance ministers across the world, as they attempt to negotiate a deal with the US administration, the IMF said the global economy would slow just the same if Mr Trump were to make his temporary pause on reciprocal tariffs permanent.
That is because higher tariffs between the US and China, which together account for 43% of the global economy, would have spillover effects on the rest of the world that offset the benefits to individual countries.
“The gains from lower effective tariff rates for those countries that were previously subject to higher tariffs would now be offset by poorer growth outcomes in China and the United States – due to the escalating tariff rates – that would propagate through global supply chains,” the IMF said.
In response, Chancellor Rachel Reeves said:
“This forecast shows that the UK is still the fastest-growing European G7 country. The IMF have recognised that this government is delivering reform which will drive up long-term growth in the UK, through our plan for change.
“The report also clearly shows that the world has changed, which is why I will be in Washington this week defending British interests and making the case for free and fair trade.”