In this episode of Listen Without Prejudice, Mark Chick, Partner at Bishop & Sewell, is joined by Chris Macartney, Partner in the Landlord and Tenant team, to break down one of the most talked-about property announcements of recent months: the government’s draft Commonhold and Leasehold Reform Bill and its proposals to cap and ultimately extinguish ground rents.
The draft legislation proposes a cap of £250 per year on existing ground rents, with a further provision that ground rents will be reduced to a peppercorn after 40 years. While the proposals are not expected to become law until 2028 at the earliest, they already raise significant questions for leaseholders, freeholders, investors, and valuers.
Mark and Chris explore how these changes could affect the value of long leases, the future of ground rent portfolios, and whether the reforms could face human rights challenges, similar to those currently surrounding the Leasehold and Freehold Reform Act 2024. They also discuss why the government has opted for a cap rather than a complete abolition of ground rents, and how the proposed reforms attempt to strike a balance between protecting leaseholders and avoiding large-scale compensation claims.
Crucially, the episode addresses the practical question many listeners are asking right now: should you act now if you’re considering a lease extension or buying your freehold, or wait? With uncertainty likely to persist for several years, this conversation offers timely guidance for navigating decisions in a shifting legal landscape.
Chapter Markers
(01:40) – The £250 ground rent cap and the 40-year “switch-off”
(05:30) – Why the government chose a cap instead of abolition
(09:30) – What this means for lease extensions and enfranchisement today
(13:00) – Final thoughts: uncertainty, opportunity, and “watch this space”
