Ground Rents for Conveyancers - The Key Issues, Reforms & Current Challenges

Introduction

A government consultation paper published in 2017 highlighted growing concerns about onerous ground rents, a problem that had been increasing since at least 2005. In response, a ban on monetary ground rents for new long residential leases was introduced. However, this left existing leases unaffected.

The so-called ‘ground rent scandal’ also led the Competition and Markets Authority (CMA) to take enforcement action against four major developers for allegedly unfair practices, including the imposition of onerous ground rents.

High ground rents can affect the marketability of flats and, in some cases, prevent lenders from offering mortgage finance. In January 2026, the government announced a new cap on ground rents and signalled that peppercorn rents will eventually become mandatory.

This live, interactive course is designed to explore essential issues surrounding ground rents, focusing on their legal and practical implications for residential conveyancers.

What You Will Learn

This live and interactive session will cover the following:

• The key implications of the government’s ground rent cap and the eventual 40-year ban on monetary rents
• The differences between ground rent and additional rents reserved
• The implications of rent expressed to be payable ‘whether or not formally demanded’
• The legal requirements for valid ground rent demands
• The interrelationship between high rents and the open market value of the flat
• Renters' Rights Act provisions that have ended the “assured tenancy trap”
• Lenders’ Part 2 requirements: initial rent and subsequent reviews
• The effect of the ‘public pledge for leaseholders’ signed by ‘leading developers and freeholders’
• The CMA’s enforcement cases into unfair ground rent practices
• Practical implications and limitations of RPI-linked rent reviews”
• Is it possible to circumvent the provisions of the Leasehold Reform (Ground Rent) Act 2022?
• Statutory and conditional right to reduce the rent to a peppercorn
• Pending reforms to ground rents on lease extension
• A lessee’s liability to pay lessor’s costs resulting from non-payment of rent

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.