28/01/2026
Hot of the press -ground rent limits and commonhold revisited!
Changes to ground rent for existing leaseholders The Government have also announced a change for existing leaseholders for ground rents to be capped at ยฃ250 a year, dropping to a peppercorn (nil rent) after 40 years. The vision for this change is to come into place in 2028, with new leasehold flats also being banned.
Commonhold is a form of property ownership in England and Wales that allows flat owners to own their homes outright, rather than on a time-limited lease. Introduced by the Commonhold and Leasehold Reform Act 2002, it removes key problems associated with leasehold, including ground rent, lease expiry and landlord control. Each owner holds their individual unit and is a member of a commonhold association, which collectively manages and maintains the buildingโs common parts. The Government has signalled a renewed commitment to commonhold, publishing a draft Commonhold and Leasehold Reform Bill in January 2026 with the intention of modernising the system and moving towards commonhold becoming the default form of ownership for flats.
