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Written question asked by Baroness Maclean of Redditch (Conservative) on Monday, 9 February 2026, in the House of Lords. It was due for an answer on Monday, 23 February 2026. It was answered by Baroness Taylor of Stevenage (Labour) on Monday, 23 February 2026 on behalf of the Ministry of Housing, Communities and Local Government.

Ground Rent

Question

To ask His Majesty's Government what assessment they have made of the impact of the proposal to cap ground rents before changing to a peppercorn after 40 years in the draft Commonhold and Leasehold Reform Bill.

Answer

Through the draft Commonhold and Leasehold Reform Bill published on 27 January 2026, the government is proposing to cap ground rent at £250 per year, before changing to a peppercorn in 40 years.

We estimate around 770,000 to 900,000 leaseholders pay over £250 per year in ground rent and will save money this Parliament. Leaseholders across nearly 4 million properties pay a ground rent in England and Wales. We estimate they will save a total of £10-12.7bn over the policy’s lifetime as a result of this change.

For further information, I refer the Noble Baroness to the Written Ministerial Statement HLWS1278 on 27 January 2026 (attached), and to the Policy statement on ground rents (attached) published on that date.

Secondary information

Type
Written question
Reference
HL14445
Session
2024-26
Attachment
Policy statement on ground rents; Written Statement 27 January 2026
Related items
Subjects
Ground rent
Link
View this Written question on www.parliament.uk