Churchill Retirement in warning on changes to ground rents

Retirement housebuilder Churchill on Wednesday warned proposed changes to Britain’s leasehold system have triggered “cautious” land buying and created market uncertainty.

Chairman Spencer McCarthy, whose firm creates apartments for OAPs in places such as Hertfordshire, Surrey and Kent, said the government’s plan to set ground rents on new long leases to zero “will disproportionately affect us”.

Churchill and rivals such as McCarthy & Stone are awaiting a government update on the proposals. The firms typically rely on ground rent income to help pay for the construction of expensive communal areas for residents, such as lounges, hair salons and dining rooms.

Churchill thinks there is a “strong case” for retirement housing to be exempt from any changes.

The firm saw sales rise 5.9% to £188.4 million in the year to June, and average selling prices increased 1.6% to £313,000.