Finance
UK asset manager M&G expects 230-million-pound hit from Leasehold Reform Bill
Published by Global Banking & Finance Review®
Posted on January 27, 2026
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 27, 2026
1 min readLast updated: January 27, 2026
M&G warns of a £230 million impact from the UK's Leasehold Reform Bill, which will cap ground rents and affect over 5 million leaseholders.
Jan 27 - UK asset manager M&G on Tuesday warned of a 230 million pound ($314.32 million) one-off hit from the government's proposed property overhaul once the measures take effect, citing an exposure of 722 million pounds to ground rent assets.
Prime Minister Keir Starmer said on Tuesday that Britain will cap ground rents at 250 pounds ($342) a year in an overhaul of its antiquated property system.
M&G said that the proposed property overhaul, which it expects to take effect in 2028, would result in a 15 million pound reduction of its adjusted operating profit.
The reform will apply to more than 5 million leaseholders in England and Wales and will ultimately reduce permitted ground rents to a nominal "peppercorn" after 40 years, the government said in a statement.
Shares of the asset manager were marginally down in early trading.
($1 = 0.7317 pounds)
(Reporting by Sri Hari N S in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair)
The Leasehold Reform Bill is a proposed legislation in the UK aimed at reforming the leasehold property system, including capping ground rents and changing the rules around leasehold agreements.
Ground rent is a fee paid by leaseholders to the freeholder of a property, typically on an annual basis, for the land on which the property is built.
Adjusted operating profit is a measure of a company's profitability that excludes certain non-recurring items, providing a clearer view of ongoing operational performance.
Financial implications refer to the potential effects or consequences that a decision or event may have on a company's financial performance or position.
A one-off hit refers to a significant financial impact that occurs only once, rather than being a recurring expense or loss.
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