Future homebuyers to be freed from expensive ground rent bills on 30 June
Future homebuyers will see their prospective property bills reduce in just over two months, when the government’s ban on charging ground rent on new leases in England and Wales comes into force.
The government is taking action to rid future homeowners of annual costs – known as ground rent. Sometimes worth hundreds of pounds a year, these charges provide no clear service in return and can be set to escalate regularly, with a significant financial burden for leaseholders.
From 30 June 2022, anyone buying a home on a long new lease will now be freed from these annual costs, helping homeowners manage their bills as they face cost of living increases.
Landlords will be banned from charging ground rent to future leaseholders, under a new law that will lead to more transparent homeownership for thousands of homebuyers.
In preparation, many landlords have already reduced ground rent to zero for homebuyers starting a new lease with them. Anyone preparing to sign a new lease on a home in the next two months should speak to their landlord to ensure their ground rent rate reflects the upcoming changes.