The new year has not brought the happiest of headlines for Ground Rents Income, the investment trust Questor tipped in May last year. The Government’s announcement this month of plans to give homeowners in leasehold properties the right to extend their leases by 990 years, at zero “ground rent”, has sent shares in the fund sliding.
Investors have unsurprisingly judged the announcement not to be good news for a fund that derives its income from those very ground rent payments. The shares have fallen to 63p, 16.9pc below the 75.8p at which we tipped them. They now stand at a 41pc discount to their 106.7p net asset value.