Ground Rent Consultation
3 SW, Fry Building
2 Marsham Street
London SW1P 4DF
Modern leasehold: restricting ground rent for existing leases
- From:
- Department for Levelling Up, Housing and Communities and Ministry of Housing, Communities and Local Government
- Published
- 9 November 2023
- Last updated
-
819DecemberMarch20232026 — See all updates
Applies to England and Wales
This consultation has concluded
Read the full outcome
Modern leashold - Restricting ground rent for existing leases - summary of responses
PDF, 1.54 MB, 98 pages
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Modern leashold - Restricting ground rent for existing leases - summary of responses
PDF, 1.54 MB, 98 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alternativeformats@levellingup.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Detail of outcome
This is a summary of responses to the consultation.
It should be read in conjunction with the government’s policy statement on Addressing unregulated and unaffordable ground rent.
Original consultation
Summary
This consultation seeks views on capping the maximum ground rent that residential leaseholders can be required to pay in England and Wales.
This consultation closesran atfrom
to
Consultation description
This consultation sets out a series of options for how the government could intervene to cap the ground rent leaseholders have to pay. The government has already legislated to ensure that new residential leases are restricted to a peppercorn ground rent. This consultation sets out a series of options to extend this protection to existing leaseholders.
The consultation outlines 5 options including;
- capping ground rents at a peppercorn
- setting maximum financial value for ground rent
- capping ground rents at a percentage of the property value,
- limiting ground rent to the original value when the lease was agreed
- freezing ground rent at current levels.
This work builds on the governments existing programme to deliver a better deal for leaseholders including the Ground Rent Act 2022 which limits ground rent on new leases to one peppercorn per year - effectively setting the rate to zero.
The Leasehold and Freehold Reform Bill - which will be introduced to Parliament soon - will go further. It delivers on the government’s manifesto commitment to make the leasehold system more transparent, protecting the millions of people who own a leasehold property.
Today’s public consultation will be open for 10 weeks and the government will carefully consider all responses before responding. Subject to the outcome of the consultation we aim to introduce reforms through the Leasehold and Freehold Reform Bill.
An impact assessment for this consultation was published on 6 December 2023.
Ways to respond
or
Email to:
Groundrents.Consultation@levellingup.gov.uk
Write to:
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Updates to this page
Published 9 November 2023
Last updated 819 DecemberMarch 2023
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Update history
2026-03-19 17:31
Summary of responses added.
2023-12-08 15:33
This consultation has been extended another 4 weeks and now closes on 17 January 2024.
2023-12-06 14:48
Added link to Welsh translation of the consultation. Added link to the consultation impact assessment.
2023-11-09 07:00
First published.
Consultation description
This consultation sets out a series of options for how the government could intervene to cap the ground rent leaseholders have to pay. The government has already legislated to ensure that new residential leases are restricted to a peppercorn ground rent. This consultation sets out a series of options to extend this protection to existing leaseholders.
The consultation outlines 5 options including;
- capping ground rents at a peppercorn
- setting maximum financial value for ground rent
- capping ground rents at a percentage of the property value,
- limiting ground rent to the original value when the lease was agreed
- freezing ground rent at current levels.
This work builds on the governments existing programme to deliver a better deal for leaseholders including the Ground Rent Act 2022 which limits ground rent on new leases to one peppercorn per year - effectively setting the rate to zero.
The Leasehold and Freehold Reform Bill - which will be introduced to Parliament soon - will go further. It delivers on the government’s manifesto commitment to make the leasehold system more transparent, protecting the millions of people who own a leasehold property.
Today’s public consultation will be open for 10 weeks and the government will carefully consider all responses before responding. Subject to the outcome of the consultation we aim to introduce reforms through the Leasehold and Freehold Reform Bill.
An impact assessment for this consultation was published on 6 December 2023.
Ways to respond
or
Email to:
Groundrents.Consultation@levellingup.gov.uk
Write to:
Share this page
SharingThe willfollowing links open the page in a new tab
Updates to this page
Published 9 November 2023
Last updated Sign up for emails or print this page
Update history
2026-03-19 17:31
Summary of responses added.
2023-12-08 15:33
This consultation has been extended another 4 weeks and now closes on 17 January 2024.
2023-12-06 14:48
Added link to Welsh translation of the consultation. Added link to the consultation impact assessment.
2023-11-09 07:00
First published.