Ground rents – Government consultation on capping

    Ground rents – Government consultation on capping

    The Government utilised the King’s Speech last week to introduce further proposals to reform leasehold ownership of homes.  

    One proposal was the potential to cap ground rents under existing leases of properties in England and Wales. This responds to very negative feedback and escalating rents (such as RPI linked ground rents) experienced by many leasehold owners. 

    All new leases must now limit ground rents to peppercorn. However, there are many pre-existing leases where ground rents can escalate and in extreme examples have led to properties becoming unsellable.  

    On 9 November 2023, the Government opened a consultation portal (, inviting affected parties to submit their opinions on existing ground rents and the various interventions they have proposed to introduce capping of existing ground rents.

    The consultation period closes on 21 December 2023. Subject to the outcome of the consultation, the intention is to introduce the proposed cap on existing ground rents through the Leasehold and Freehold Reform Bill.  

    This is one of several proposals for change sought to be introduced by the Government in response to the widely criticised housing system. News of the Government’s decision to pause the controversial abolition of Section 21 Notices (no fault evictions) will be very welcome news for landlords of residential assured shorthold tenancies.

    For legal advice regarding property disputes

    Get in touch

    Related posts