{
  "id": 5271231,
  "title": "M&G: FTSE 100 giant hits out at Rayner’s ground rent cap as it suffers loss",
  "url": "https://urgent.news/2026/09/03/m-g-ftse-100-giant-hits-out-at-rayners-ground-rent-cap-as-it-suffers",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T06:41:52.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/mg-ftse-100-giant-hits-out-at-rayners-ground-rent-cap-as-it-suffers-loss/"
  },
  "original_language": "en",
  "account": "Asset management firm M&G has reported a loss of £165m for the first half of this year due to a government-imposed cap on existing ground rents. The FTSE 100 group reported a 15% increase in its core operating profit to £435m, excluding the write-down. Housing Secretary Angela Rayner supports the £250 annual cap on pre-existing ground rents, which refers to the annual fees paid by current leaseholders for the land beneath older properties. M&G holds approximately £722m in UK ground rent assets that generate income for future customer pensions. The firm recognized a £325m write-down after the cap reduced the cash flows the freeholds could collect, thereby slashing the value of the assets. M&G's CEO, Andrea Rossi, expressed disappointment, stating that a proportionate solution could not be agreed upon. Labour aims to eventually reduce the cap to £0. M&G had lobbied for a softer alternative, advocating for a cap tied to initial lease amounts with inflation-adjusted escalations instead of the blanket £250 cap. M&G's total assets under management increased to £387.4bn, with net inflows reaching £2.4bn, driven by strong private markets and public asset management inflows.",
  "summary": "Asset manager M&G has swung to a loss driven by the Labour government’s introduction of a cap on existing ground rents. The FTSE 100 group hit out at the government after it reported a £165m loss for the first six months of the year, driven by a £325m write-down eating into its bottom-line. In its [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}