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Ground rent charges on new leases to be banned from June

  • 22/04/2022
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Ground rent charges on new leases to be banned from June
Ground rent charges will be banned on most new residential leases from 30 June, the government has announced.


From this date, landlords will be prohibited from charging ground rent to people buying a home on a new long lease. The government described the charges, which often increase yearly, as providing “no clear service in return”. 

Some landlords have already started to reduce ground rent to zero for new buyers in preparation for the ban. 

This measure is part of the Leasehold Reform Act which aims to make home ownership fairer and more transparent for leaseholders. Other changes include the new right for leaseholders to extend their leases to 990 years at zero ground rent and a requirement for housebuilders to stop doubling ground rent every year.

Lord Stephen Greenhalgh, leasehold minister, said: “This is an important milestone in our work to fix the leasehold system and to level up home ownership. Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers. 

“I welcome the move from many landlords who have already set ground rent on their new leases to zero and I urge others to follow suit ahead of this becoming law.” 

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