“Good news for homeowners, we’re capping ground rent at £250. That means if you are a leaseholder, and your ground rent is more than £250, you’ll be paying less.”

Where it stands

The cap is in the draft Commonhold and Leasehold Reform Bill, published on 27 January 2026: £250 a year, falling to a peppercorn after 40 years, for leaseholders in England and Wales. The King's Speech of 13 May 2026 named the Bill, including the capping of ground rents, and the Leader of the House said on 10 September 2026 that it will be introduced; by 20 October 2026 it had not been. The government said the cap could come into force in late 2028, subject to parliamentary timings. The card moves to Legislated when the Bill becomes law.

What has happened

1. Jan 2026The Prime Minister announces a £250 cap on ground rents in a video on TikTok, Promised
2. Jan 2026The government publishes the draft Commonhold and Leasehold Reform Bill with the cap, In plan evidence

About the cost

No cost to the taxpayer: the cap moves money from freeholders to leaseholders. The announcement says many leaseholders will save over £4,000 over the course of their lease.

More detail

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