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Leasehold Reform (Ground Rent) Bill – progress report

Published: 09/02/2022

In January last year we posted a blog referring to the government’s statement that legislation would be brought forward to set future ground rents in long residential leases to zero.
Now, just over a year later, the Leasehold Reform (Ground Rent) Bill, which is the first piece of legislation to reform the leasehold system, is close to becoming law having recently passed through both houses of Parliament.
This Bill prohibits freeholders from demanding ground rent in excess of one peppercorn per year as part of a new residential long lease.  It also bans the charging of administrative fees for collecting a peppercorn rent with fines of up to £30,000 for breach of this provision.