On 28th February 2020 the Competition & Markets Authority (CMA) published an update report on its investigation into Leasehold Housing. In this report the CMA stated:

"The consequences of ground rent obligations can be severe for homeowners...but the justifications for it given to us seem at best limited."

Analyse why such 'onerous' ground rents have arisen in long residential leaseholds, whether they can be justified and the consequences that are faced by long residential leaseholders as a result. To what extent have the impacts of 'onerous' ground rents in existing leases been addressed through legislative and non-legislative means? Do you consider other steps are needed to deal with onerous ground rents in existing long residential leases?

In preparing your report you need to analyse:

1. The type of ground rent provisions that have given rise to concern.
2. The reasons and justifications for these provisions.
3. The impact of a high ground rent on:

• the status of a long residential lease;
• the acceptability of the lease as security for lenders;
• the marketability of the lease; and
• the ability of the leaseholder to purchase the freehold.

1. How and to what extent the identified impacts have been addressed through legislative and non-legislative means.
2. Whether further steps are required and what those might be