The UK Government has today announced a landmark proposal to cap ground rents at £250 per annum, bringing to an end a regime of uncapped ground rents previously.
Commentary suggests this will offer long‑awaited relief to around one million leaseholders across England and Wales. What is not certain though is whether freeholders whose interests will be affected may bring legal claims against the Government for this proposed change.
This reform, part of the upcoming Leasehold and Commonhold Reform Bill, represents one of the most significant shifts in property law for decades.
By limiting ground rents, the Government aims to modernise a system long criticised by some for its complexity and imbalance.
For leaseholders, this means greater financial certainty. For investors and property professionals, it signals a changing landscape—one that will reshape valuations, portfolios, and long‑term strategies.
The Government remains committed to promoting a form of legal ownership called ‘Commonhold’ and which will be the subject of future F&F commentary.
For any legal advice relating to UK Real Estate, please contact Alastair Hargreaves, Anna Douglass, Caren Vidamour or Hannah Damant.