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The UK government has responded to calls to tackle 'unaffordable and unregulated ground rents' for leaseholders. Ground rent is an annual fee paid by a leaseholder to the freeholder for the right to occupy the land their property sits on.

Many leaseholders are worried about ground rents rising and fear they may struggle to sell or remortgage their homes. The rules for new leases was changed in 2022, with ground rent abolished and typically set at a "peppercorn" rent which is zero.

Although the system was changed for new leases, people who bought leasehold properties earlier don’t benefit from the reforms yet. Those with existing leaseholds are therefore calling on the government to change the rules on ground rent.

The Leasehold and Freehold Reform Act 2024 (LAFRA) recei

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