Is ground rent being abolished? (and when, for existing leases)

Ground rent on qualifying new residential long leases has already been cut to a peppercorn by the 2022 Act. Existing leases still carry the rent reserved, for now, while reform continues. Here is the honest, current position for leaseholders and freeholders.

This is one of the most common questions in leasehold, and the honest answer has two halves. Ground rent on qualifying new residential long leases has already been cut to a peppercorn, which is effectively nil. But the ground rent on leases that already existed was not abolished, and as of 2026 it generally remains payable while further reform is still being worked through. So whether ground rent is being abolished depends entirely on whether you are asking about a new lease or an existing one.

The short answer

• New leases: ground rent is already gone. A qualifying new residential long lease can lawfully reserve no more than a peppercorn.
• Existing leases: ground rent is still payable for now. It was not abolished by the 2022 Act, and there is no fixed abolition date in law as of 2026.
• Reform is ongoing. The direction of travel is clearly away from ground rent, but until a change is actually brought into force, an existing lease still carries the rent it reserves.

New leases: ground rent is already gone (2022 Act)

The Leasehold Reform (Ground Rent) Act 2022 restricts the ground rent on qualifying new residential long leases to a peppercorn, meaning a landlord cannot lawfully charge a real money ground rent on a new lease that falls within the Act. The restriction came into force from 30 June 2022 for most new residential long leases, with retirement leases brought in from 1 April 2023.

The key point is that this applies going forward, to leases granted after the relevant commencement date. It is not retrospective. It did not reach back and wipe out the ground rent on leases that were already in existence. Charging a prohibited ground rent on a qualifying new lease can carry a financial penalty, so for genuinely new leases the position is settled.

Existing leases: still payable for now

This is the part most people are really asking about when they search for when ground rent will be abolished for existing leases. The plain position as of 2026 is that existing ground rents were not abolished by the 2022 Act, and there is no commencement date in law that ends them.

If you hold an older long lease that reserves a ground rent, that rent generally remains payable under the terms of your lease. A government consultation or a stated intention to reform is not, by itself, a change in the law. So while the long term direction is away from ground rent, you should not treat an existing ground rent as already abolished, and you should keep paying what your lease reserves until the law actually changes for existing leases.

What reform is coming

The Leasehold and Freehold Reform Act 2024 signalled further reform of the leasehold system, and the government has consulted on the question of capping ground rents on existing leases. Those steps point firmly toward reducing or removing ground rent over time. However, as of 2026 the detail and timing of any cap or change to existing ground rents has been the subject of consultation rather than a fixed, in force rule.

One proposal under discussion would cap ground rent on existing leases at a fixed figure (a £250 a year cap has been suggested), stepping down to nil after a transition period. This is a proposal at the time of writing, not law, so it should be treated as a likely direction of travel rather than a current rule. Check the latest government position before relying on it.

Because this is a fast moving area, the safest approach is to follow current government guidance rather than rely on a predicted date. We will keep this guide current, but treat any specific future date you see quoted elsewhere with caution unless it is actually in force.

If you're a freeholder collecting ground rent

On the freeholder side, the practical takeaway is the mirror image. You cannot reserve more than a peppercorn on a qualifying new lease, so new grants should be set up accordingly. On your existing leases, the ground rent reserved generally remains payable and demandable for now, served and administered in the normal way.

What matters most for a small portfolio is keeping each property tagged correctly: which leases are older grants that still carry a real ground rent, which are peppercorn, and which interests are actually freehold rentcharges sitting under a different regime altogether. Getting that distinction right is exactly what good record keeping, and a system like ChiefRent, is for.

A note on scope: this is general information, not legal advice, and the law in this area is changing. For the current position on existing leases, check up to date government guidance, and if you need advice on your particular lease, speak to a solicitor.