Ground rent: what the law says now
Peppercorn rents for new leases, and proposals for existing ones.
Reviewed by Mark Cunningham AssocRICS MTPI MIFSM, Leasehold Director. Last reviewed 3 October 2026.
Ground rent is a payment to the freeholder under the lease. It is separate from the service charge.
New leases
The Leasehold Reform (Ground Rent) Act 2022 limits ground rent on most new long residential leases granted from 30 June 2022 to a peppercorn (zero).
Existing leases
Existing ground rents continue. A landlord must send a formal demand before ground rent is payable (s166, Commonhold and Leasehold Reform Act 2002). The draft Commonhold and Leasehold Reform Bill, published in January 2026, proposes capping ground rents on existing leases; it is not yet law.
Sources
Leasehold Reform (Ground Rent) Act 2022Commonhold and Leasehold Reform Act 2002The Property Institute: update on the Leasehold and Freehold Reform Act 2024How we can help
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