Can I increase the ground rent?

Whether you can increase ground rent depends entirely on the lease. Fixed, stepped, RPI-linked and doubling rents all behave differently, and recent law has changed what's allowed on new leases. Here's how to tell.

It is one of the most common questions freeholders ask, and the honest answer is: only if the lease lets you. Ground rent is whatever the lease reserves and changes only in the way the lease provides. There is no general power for a freeholder to put the rent up because costs have risen or the property has gone up in value. Before assuming anything, the first job is to read the rent clause.

The four kinds of ground rent

Almost every lease sets the rent up in one of these ways:

TypeHow it behavesCan you increase it?
FixedThe same sum for the whole term (e.g. £10 a year for 990 years)No, it stays as reserved
SteppedRises by set amounts on stated dates written into the leaseOnly as, and when, the lease specifies
Index-linked (e.g. RPI)Reviewed periodically against an indexYes, but strictly per the review clause and the index
DoublingDoubles at set intervals (common in some modern leases)Only as the lease specifies; these are now controversial

If your lease reserves a flat sum with no review clause, which is typical of older ground rents and chief rents, then the rent is simply that sum, indefinitely. You cannot increase it.

How to check your own lease

  1. Find the "rent reserved", usually near the start, stating the yearly amount.
  2. Look for a rent-review clause: wording about the rent being increased, doubled, or reviewed on set dates or against an index.
  3. If there is no review clause, the rent is fixed for the term.
  4. If there is one, it tells you the trigger date, the method, and any cap, so follow it exactly.

What the law now says

Policy has turned decisively against rising ground rents. The Leasehold Reform (Ground Rent) Act 2022 means most qualifying new long residential leases can reserve only a peppercorn rent (effectively nil). That does not rewrite existing leases, which keep the rent they reserve, but it sets the direction: ground rent is increasingly treated as a legacy charge to administer, not a revenue line to grow. Doubling rents in particular have drawn regulatory and lender scrutiny.

Chief rents and rentcharges

If your interest is a freehold rentcharge (chief rent) rather than a lease, the same principle applies but the source is the original conveyance, not a lease, and the figure is almost always fixed in perpetuity. See Section 166 vs chief rent for how the two regimes differ.

Frequently asked questions

Can a freeholder just decide to put the ground rent up?
No. Ground rent can only change in the way the lease itself provides. If the lease sets a fixed sum, that sum is what's payable. A freeholder cannot unilaterally raise it. The lease is the contract and it governs.
How do I find out whether my lease allows an increase?
Read the rent reserved in the lease and any rent-review clause. It will be one of: a fixed amount for the whole term; a stepped amount that rises on set dates; a reviewed amount linked to an index such as RPI; or a doubling rent. The clause tells you exactly when and how any change happens.
Aren't ground rents being abolished?
For most new long residential leases granted since June 2022, the Leasehold Reform (Ground Rent) Act 2022 restricts the ground rent to a peppercorn (effectively nil). That applies to qualifying new leases, not retrospectively to existing ones. Existing leases keep whatever rent they reserve, but the direction of policy is firmly away from rising ground rents.
Can I demand more than the lease says if costs have gone up?
No. You can recover reasonable administration charges where the lease and Schedule 11 allow, but the ground rent itself is fixed by the lease. Demanding more than the reserved rent is not enforceable and can undermine an otherwise valid demand.

A note on scope: this is general information, not legal advice or a reading of your particular lease. If a rent-review clause is involved or the wording is unclear, have a solicitor interpret the lease before acting on it.

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