Capping ground rent at a peppercorn rate would cause retirement housing specialist McCarthy & Stone to reduce the number of homes it builds for the older generation.
The warning came as the company reported a 4% rise in revenue to £660m in the year to August. The number of homes built edged up to 2,302, while the average selling price was £273,000.
The builder sells its apartments leasehold, and sells the freehold to private companies. A move to cap ground rent would make the freeholds less attractive for investors, chief executive Clive Fenton said. It got 4% of revenue last year from the sale of freeholds.
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