Draft Bill Proposes £250 Cap on Most Long Residential Ground Rents
UK Property News

Draft Bill Proposes £250 Cap on Most Long Residential Ground Rents

By Jordan Hale, Senior Lettings Editor · 20 August 2026 · 1 min read

Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Draft Bill Suggests Major Changes to Ground Rent Rules

A draft Commonhold and Leasehold Reform Bill proposes that most existing long residential ground rents would be capped at £250 per year. According to Property118, the cap would then be reduced to a peppercorn after 40 years.

This proposal is part of a wider programme of change related to ground rent reform. The report notes that reform of ground rents is widely considered overdue.

Letting agents and inventory clerks should be aware of these proposed changes, as they may affect leasehold management and rental agreements in the future.


Source: Property118
About the author
Jordan Hale
Senior Lettings Editor

Jordan Hale leads The Property AI's lettings coverage with a focus on UK rental legislation, agent compliance, and the day-to-day pressures facing letting agents. Articles bylined Jordan Hale combine current trade reporting with practical guidance for letting agents and inventory…

Specialises in: Renters' Rights Act, EPC regulations, tenancy deposit schemes, agent licensing, Right to Rent compliance.

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