Ground Rent Capped at £250 Per Year for Leaseholders in England and Wales

The government has introduced a significant reform to the leasehold system in England and Wales, implementing a cap on ground rent. This new law limits annual ground rent charges to a maximum of £250, a move designed to protect millions of homeowners from escalating and unfair costs. The change represents a core part of ongoing leasehold reform legislation aimed at overhauling historic property laws.

For flat owners and other leaseholders, ground rent is a recurring fee paid to the freeholder for the land their property sits on. The new cap provides substantial financial relief and clearer long-term affordability, addressing widespread concerns about unpredictable charges. This intervention is set to impact the property market by altering the dynamics between leaseholders and freeholders.

While the reform stops short of abolishing ground rent entirely, it establishes robust leaseholder rights and protections. The changes apply to both new and existing leaseholds, marking a decisive shift in housing policy. This legislative update is a critical step in rebalancing the leasehold system, offering greater security and predictability for homeowners across England and Wales.