On the 27th January 2026, the Government announced that a new cap was going to be placed on ground rent.
But what exactly does this mean for thousands of leaseholders across the country?
In her latest article, Leasehold Specialist, Niki Adkins, outlines everything leaseholders need to know about the upcoming ground rent cap...
What is Ground Rent?
Ground rent is a payment a leaseholder (flat owner) has to pay to their freeholder/landlord; essentially as a ‘rent’. It is not for any kind of service.
You can read our dedicated article on ground rent here.
What is the new cap on Ground Rent?
The Government announced on 27th January 2026 that it will cap all ground rents in existing residential long leases (i.e. leases belonging to flat owners) at £250.00 a year. Whether this will happen automatically is yet to be seen.
When will the £250 cap on Ground Rent come into place?
The January 2026 announcement suggested that the cap could start around the end of 2028, but this is not confirmed.
Therefore, anyone suffering from a ground rent issue currently is likely to still have to wait until late 2028 for their problem to be resolved.
What are the benefits of a ground rent cap for leaseholders?
Higher or increasing ground rents have been a problem for leaseholders for a number of years. This has meant some leaseholders have not been able to sell or remortgage their flat..
Therefore, the cap on ground rents will (once implemented) hopefully assist with flat sales and remortgages.
When will my Ground Rent reach a peppercorn?
The Government have suggested that, on top of the £250 cap, ground rents will be further capped/limited to a peppercorn (zero) after 40 years. When that 40 year period starts though, remains to be confirmed.
What our experts have to say
It is difficult to advise leaseholders whether they can now relax about their ground rent problems or not, as, whilst we have a guideline of ‘late 2028’ for the implementation of the cap, there is no definitive timetable.
Leaseholders who need to sell or remortgage before the end of 2028 may still need to either agree a Deed of Variation with their freeholder to formally cap/reduce their ground rent.
Alternatively, leaseholders can force the freeholder to bring their ground rent down to zero (without any 40 year delay) by undertaking a ‘statutory lease extension’.
Our specialist lawyers at Frettens can assist with a ground rent issue whilst we are awaiting implementation of this new cap, get in touch with one of our experts on 01202 499255.
We anticipate that some freeholders may decide to sell their freeholds in light of this ground rent cap. Our article on ‘Right of First Refusal’ explains what a freeholder will have to do in the event that they wish to sell.
Our specialist lawyers at Frettens can also assist if you receive a Section 5 Offer Notice from your freeholder, which you can read more about here.
Specialist Leasehold Property Experts
If you’d like advice on ground rent changes, lease extensions, Deeds of Variation, the Right of First Refusal, or Section 5 Notices, our expert team can provide clear, practical guidance.
You can get in touch with one of our expert Leasehold Property Lawyers on 01202 499255 or by filling out the form. We offer all new clients a free initial chat.
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