Ground rent reforms not major worry for leaseholders
Escalating service charges are the biggest concern for leaseholders today, according to new survey data from Justice for Property Rights.
It found that more than a third (38.5%) of leaseholders identified service charges as the cost that had increased most unexpectedly, making it the largest single concern of eleven options.
Ground rent, meanwhile, placed fifth on the priority list for leaseholders, with 88.1% saying their ground rent was affordable or neutral and only 13.8% identifying reducing or abolishing ground rents as the Government reform that would make the greatest difference to them.
The results follow the UK Minister of State for Housing, Matthew Pennycook’s announcement that the Government will be unable to issue a response to the Housing Committee’s report – in which ground rent reform is dominating Parliamentary discussions – before the two-month deadline of 27 July 2026.
Justice for Property Rights says the Government’s own explanation of the proposed legislation reinforces the need for evidence-led policymaking. In a recent letter to one of its members, Housing Secretary Steve Reed MP acknowledged that the Government’s proposals are intended to address “a specific issue” and that ministers believe the reforms are “a proportionate approach”.
Commonhold remains a crucial option as a long-term solution but will take years to become the main form of ownership. Instead, Justice for Property Rights is calling for a strengthening of the Right to Manage (RTM), which it says will enable a speedier response and allow leaseholders to take control of appointing and directing their own managing agents immediately.
The government’s proposal is to cap ground rents at £250 per annum, confiscate rent after 40 years (without indexation), and give huge discounts for lease extensions. Justice for Property Rights is warning that the fear of new legislation has already wiped out an estimated 70% of existing ground rent assets and will hit pensioners and small investors the hardest.
Richard Merrin, spokesperson for Justice for Property Rights, said: “The Housing Secretary says these reforms are designed to address ‘a specific issue’ and represent ‘a proportionate approach’. And yet our research demonstrates that ministers are focusing on the wrong issue altogether.
A duty to explain
“If almost four in ten leaseholders say service charges are their biggest financial concern, while only 13.8% believe abolishing ground rents would make the greatest difference, then Government has a duty to explain why its flagship reforms are aimed elsewhere.”
“Leaseholders have told us clearly what they want fixed, and it isn’t ground rent. It’s service charges they can’t predict, can’t challenge and often can’t afford. Government has an opportunity to fix the biggest concern amongst leaseholders by implementing transparency requirements and empowering leaseholders to manage the cost of their own homes.”
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