Modern leasehold: restricting ground rent for existing leases

Closes 21 Dec 2023

Opened 9 Nov 2023


We are consulting on a number of options to cap the maximum ground rent that residential leaseholders can be required to pay in England and Wales. The consultation outlines 5 options including;

  • capping ground rent at a peppercorn (zero financial value)
  • capping ground rent at an absolute maximum value
  • capping ground rent at a percentage of the property value
  • capping ground rent at the original amount it was when the lease was granted
  • freezing ground rents at current levels

It asks for views on the the following: 

  • the full range of problems that existing ground rents can cause for leaseholders, and the scale of these problems  
  • which option to cap ground rents respondents believe is the right one to deliver our aim of giving leaseholders a fairer deal
  • whether there should be a period of delay before implementing any cap, and 
  • the types of leases which need to be exempted from any cap to ground rents  

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