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ARTICLE · 11 FEBRUARY 2022

Leasehold Reform (Ground Rent) Act Passed

Gowling WLG
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Just over a year ago, Robert Jenrick, the then Minister of Housing, Communities and Local Government, announced government reforms to "make home ownership fairer and more secure".

United KingdomReal Estate and Construction
Rob Bridgman
Rob Bridgman
Ashley Mitchell
Ashley Mitchell
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Just over a year ago, Robert Jenrick, the then Minister of Housing, Communities and Local Government, announced government reforms to "make home ownership fairer and more secure". The first step towards this was announced in the Queen's Speech in May 2021 when it was confirmed that ground rents for almost all new residential leases will be abolished. Tuesday 8 February 2022 saw this become law when the Leasehold Reform (Ground Rent) Act was passed (although regulations will need to be made by the Secretary of State before most of the provisions of the Act come into force).

The new Act, which applies in England and Wales, restricts the payment of ground rents to a peppercorn and bans rent administration charges in most future residential leases with a term longer than 21 years. There are a few exceptions, and business leases, statutory lease extensions of both houses and flats, community housing leases and home finance plan leases will not be affected by the Act. It

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