Ground Rents on New Leases Banned

Published / Last Updated on 22/04/2022

The government has confirmed that ground rents on most new leases will be banned from 30th June 2022.

From this date, Freeholders will be banned from charging a ground rent on new, long-term leases.  In short, if you buy a new, leasehold property there will be no ground rent to pay.

The Leasehold Reform (Ground Rent) Act 2022 allowed for this ban, and it is now coming into play to make it fairer and more transparent when people buy a new leasehold property.  The reality is that many builders have already made plans for this and already have nil ground rent leases in place.

Another significant change is the ability for leaseholders to extend their leases to 990 years with more transparent fees and at the same time reducing ground rents to zero.  Another welcome option.  In essence, this means that many leaseholder properties will technically become the equivalent of a freehold.


For too long, many freehold landlord construction firms have offered leasehold property and then promptly doubled ground rents consecutively, year on year.  The Act is welcome and should make property ownership whether freehold or leasehold more balanced and affordable for all.

Explore our Site

Money MOT
T and C