Future home buyers will be free from ground rent obligations from 30 June 2022, when the government’s ban on charging ground rent on leases comes into force.

From 30 June 2022, ground rent will be banned on most new residential leases from 30 June 2022, which should put an end to the expensive and unregulated cost of ground rent that has been borne by homeowners for so long.

This new legislation forms part of the governments reform package that will make homeownership cheaper, fairer and more secure.

However, as a part of the government crackdown on the housing market, the Competition Market Authority has secured commitments from some major homebuilders to stop doubling ground rent charges on existing leases.

The government has more plans ahead for existing leaseholders, such as a new right for leaseholders to extend their leases to 990 years at zero ground rent and an online calculator to help leaseholders find out how much it would cost to buy their freehold or extend their lease.

These are all welcome and positive changes which if implemented, will help homeowners feel secure. It must be said that, despite all these changes, not all homeowners will benefit even though they might find themselves with high ground rents and short leaseholds, as they do not fall within the above category. As such, the government must take action to help secure what will usually be an individual’s biggest investment.

For assistance on any residential property matters, drop Tiger a line on admin@tiger-law.com or call 01622 801 208.


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