Rayner pledges ground rent cap and homelessness powers at Labour conference

At the Labour Party Conference in Liverpool, Angela Rayner set out reforms to leasehold and homelessness. The main new leasehold commitment was a cap on ground rents at £250, with a longer-term promise to scrap them altogether. The announcement had been in doubt. When Rayner was out of office, there was back and forth between Steve Reed, housing minister Matthew Pennycook and the Treasury, who were not keen on capping ground rents. The cap will be welcomed by millions of leaseholders.

Leasehold was described as a system dating back to feudal times. People who buy a home do not own the land. A freeholder owns it and can charge rent, while a managing company can add other charges. This has led to the nickname fleecehold. Rayner pointed to cases where homeowners need permission for a pet, to change a front door or to fit a new doorbell.

On homelessness, the plans devolve powers to councils so they can help people facing homelessness and bring derelict properties back into the housing system. Housing associations would have to tell a council if they sell off a home. This would help councils keep track of social homes. There would also be requirements on housing people, so they can be housed in social housing rather than only emergency temporary accommodation. The aim is a wraparound approach to the housing market.

The other big announcement, made before Rayner's speech, was the Your First Home scheme. It is a revival of Help to Buy, aimed at younger generations. The scheme would give people who can afford a monthly mortgage but not a large deposit an interest-free loan on top of a smaller amount. The loan would be worth 2.5 per cent of the property value and would form a bigger deposit. It is aimed at people without access to the Bank of Mum and Dad and on regular incomes.

But key details are missing. The government has not said what property value limits will apply, which matters for young people in big cities with expensive housing. It is also unclear how officials will check whether someone has access to family money, or how a regular income will be defined. Shared ownership offers a comparison. In London, shared ownership is available to households with an income of up to £90,000. Outside London, the limit is £80,000. Those figures raise questions about what counts as a regular income.

Critics say Your First Home could push house prices up. An expert appraisal of Help to Buy found house prices rose by two percentage points, which is a large amount. The same appraisal found the scheme was largely good value for money. Labour has taken on a Conservative policy from 2013. Ministers hope it will encourage more people to buy and more homes to be built.

The government's wider housing target is also under pressure. It has promised 1.5 million homes by the end of parliament. Few people in the housing sector think that is possible. Rayner has changed her language and now says there is a slim chance of meeting it. The Office for Budget Responsibility has called in housing experts to understand why so few homes are being built and why the target looks likely to be missed by a wide margin. The housing market is sluggish and arguably stalled. Your First Home is seen as an attempt to give it a shot in the arm.

Rayner's speech was also a warm-up for Andy Burnham, who was due to speak at 2pm. The prime minister was later expected to address the Labour Party Conference for the first time in the job.