Ban on Landlords Charging Ground Rent

The Government’s ban on the charging of ground rent on new leases will come into force on 30 June 2022 in England and Wales.

The ban stops landlords charging a yearly ground rent. This applies to people buying new leasehold properties after 30 June 2022. They will be free from paying yearly ground rents.

It is important to note that this is not retrospective, therefore if you already own a leasehold property, this does not apply to you and you will still be under an obligation to pay your ground rent charges under the terms of your lease.

The ban will also apply to retirement homes, but this will come into force no earlier than 1 April 2023.

This is the first step of the long-awaited reforms to the leasehold system.

If you are a landlord or tenant and would like more information or need advice about your obligations please contact our friendly Commercial Property Team on 01904 624903.