Homebuyers to be freed from ground rent bills

Future homebuyers will see their prospective property bills reduce from the end of June when the government’s ban on charging ground rent on new leases in England and Wales comes into force.

Sometimes worth hundreds of pounds a year, ground rent charges provide no clear service in return and can be set to escalate regularly, with a significant financial burden for leaseholders.

From 30 June 2022, anyone buying a home on a new long lease will now be freed from these annual costs, helping homeowners manage their bills as they face cost of living increases.

Leasehold Minister Lord Stephen Greenhalgh said: “This is an important milestone in our work to fix the leasehold system and to level up home ownership. Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers. I welcome the move from many landlords who have already set ground rent on their new leases to zero and I urge others to follow suit ahead of this becoming law.”

The move forms the first part of the government’s reform package that will make homeownership cheaper, fairer and more secure. Other measures include a new right for leaseholders to extend their leases to 990 years at zero ground rent and an online calculator to help leaseholders find out how much it would cost to buy their freehold or extend their lease.