Ground rent
Ground rent is a regular payment made by a leaseholder to a landlord. Ground rent is generally only a small amount, typically £50 to £300 a year. Since the introduction of the Leasehold Reform (Ground Rent) Act 2022 in many circumstances ground rent is banned, with a number of exceptions.
The lease should set out:
- The amount of the ground rent.
- The payment dates (usually annual).
- The circumstances under which the ground rent can be increased.
Ground rent is only payable when the landlord asks for it formally, setting out:
- The name of the leaseholder.
- The period covered.
- The amount.
- The name and address of the freeholder.
- The name and address of the managing agent if payment is to be made to them.
- The due date.
- 'Notes for Leaseholders' informing leaseholders of their rights and responsibilities.
Failure to pay ground rent can result in legal proceedings, and in very extreme circumstances could lead to eviction.
As ground rent is typically very low, some landlords can fail to collect it, however, they can only recover it going back 6 years.
Ground rent can generally only be increased if the lease permits, or if the leaseholder agrees to an increase, or if the property is sold.
If a leaseholder extends a lease under the Leasehold Reform, Housing and Urban Development Act 1993 they then only have to pay a ‘peppercorn rent’ effectively a ground rent of nothing. If a lease is extended by negotiation ground rent may still be payable.
Other charges that might be made by a landlord include; service charges, consents to make alterations, the provision of information when a property is being sold and so on.
[edit] Related articles on Designing Buildings
- Betterment.
- Break clauses in leases.
- Built to suit.
- Buy-to-let mortgage.
- Dilapidations.
- Housing tenure.
- Landlord.
- Leasehold.
- Leasehold Reform (Ground Rent) Act 2022.
- Lease Negotiations - Tenants Checklist.
- Licence to alter.
- Peppercorn rent.
- Property guardianship.
- Rent.
- Rent-free period.
- Rent review.
- Reversion.
- Schedule of dilapidations.
- Scott schedule.
- Service charge.
- Supersession.
- Vacant possession.
- What is a mortgage?
[edit] External references
- The Leasehold Advisory Service. Service charges and other charges.
- Shelter. Ground rent.
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.