The Government has announced a major overhaul of the leasehold system, confirming that ground rents across England and Wales will be capped at £250 a year.
As both a Managing Director at MVN and a long‑standing leaseholder myself, I warmly welcome today’s announcement that ground rents will be capped at £250 a year before moving to a peppercorn cap after 40 years. This reform is long overdue and will bring meaningful financial relief to millions of people across England and Wales.
Over the past 12 years, I have personally seen my own ground rent quadruple for no reason at all, as no service is provided by the freeholder and my conveyancer never even explained this would happen. While I accept it was my responsibility to read the lease in full, the reality is that the majority of leaseholders we act for today still don’t read theirs either, and that is an area that urgently needs improvement.
Today’s reforms represent a significant step toward restoring that fairness. For years, I’ve seen first-hand how rising ground rents have made it difficult, sometimes impossible, for leaseholders to sell their homes. Several of the people we act for have had buyers walk away purely because the ground rent increases were so off‑putting, especially when new leasehold homes are now sold with no ground rent at all. By capping these charges, the Government is finally addressing an issue that has held families back for far too long. These changes will strengthen consumer protection, improve affordability, and ensure homeowners have a much stronger voice in how their buildings are managed.
For many families, the savings this cap will generate aren’t abstract policy gains, they’re real money back into households at a time when the cost of living remains a central concern nationwide.
At MVN, we have consistently advocated for a housing sector that is transparent, fair, and built around the long‑term wellbeing of residents. These reforms are a welcome move in that direction.
Nisha Thomas
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