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Written question asked by Baroness Maclean of Redditch (Conservative) on Wednesday, 11 February 2026, in the House of Lords. It was due for an answer on Wednesday, 25 February 2026. It was answered by Baroness Taylor of Stevenage (Labour) on Wednesday, 25 February 2026 on behalf of the Ministry of Housing, Communities and Local Government.

Leasehold: Ground Rent

Question

To ask His Majesty's Government, further to the Minister for Housing and Planning’s statement on 27 January (HC Deb col 750) that an immediate peppercorn cap on lease payments “could carry significant risks”, what are those risks; what assessment of those risks have been made by (1) the Ministry of Housing Communities and Local Government, and (2) the Treasury, and if they will publish these analyses; what meetings ministers have had with representatives of freehold estates and pension funds since taking office; and what risks, if any, they consider an immediate peppercorn cap poses to building remediation and safety.

Answer

The government is capping ground rent at £250 per year, before changing to a peppercorn in 40 years. These measures, as set out in the draft Commonhold and Leasehold Reform Bill, deliver on the manifesto commitment to “tackle unregulated and unaffordable ground rent charges” and “bring the feudal leasehold system to an end”. This policy will directly address cost of living pressures for leaseholders, and issues with buying, selling and mortgaging properties with high ground rents, before ending ground rents for good.

We recognise that these reforms will have a significant impact on freeholders and investors, but the government considers this is a justified and proportionate intervention to address harms and deliver a fair and effective housing market. We have taken investors’ concerns into account when developing this policy, which we believe strikes a fair balance between leaseholders, freeholders and those invested in ground rents.

For further information, I refer the Noble Baroness to the (attached) Policy statement on ground rents published on 27 January 2026.

Secondary information

Type
Written question
Reference
HL14536
Session
2024-26
Attachment
Policy statement on ground rents
Related items
Commonhold and Leasehold Reform
Tuesday, 27 January 2026
Proceeding contributions
House of Commons
Grouped for answer
Yes
Subjects
Buildings Leasehold Ground rent Reform Safety Repairs and maintenance
Link
View this Written question on www.parliament.uk