Leasehold: Reform

(asked on 5th September 2025) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Leasehold Reform (Ground Rent) Act 2022, what steps her Department has taken to introduce (a) clearer and (b) fairer leasehold practices.


Answered by
Matthew Pennycook Portrait
Matthew Pennycook
Minister of State (Housing, Communities and Local Government)
This question was answered on 19th September 2025

The Leasehold Reform (Ground Rent) Act 2022 puts an end to ground rents for most new long residential leasehold properties in England and Wales.

Ground rents have already been banned for most new residential long leases. This prevents landlords requiring a leaseholder to pay a financial ground rent. From 30 June 2022, if any ground rent is demanded as part of a new residential long lease it is regulated by that Act and cannot be for more than one peppercorn per year.  This limit for ground rent also applies to retirement homes for which the provisions came into force on 1 April 2023.

The government remains firmly committed to its manifesto commitment to tackle unregulated and unaffordable ground rents, and we will deliver this in legislation.

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