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Posts Tagged ‘enfranchisement’

Government Proposal to Cap Ground Rents at £250: Implications for Landlords

Posted on: January 30th, 2026 by Ella Darnell

Overview of the Proposed Changes

This week the Labour Government announced plans to cap existing residential ground rents at £250 per year from 2028, ultimately reducing to a peppercorn after 40 years. The introduction was made in the draft Commonhold & Leasehold Reform Bill, now entering pre-legislative consideration.

It is widely considered that the market has been in the hands of landlords and investors for too long. The residential market has been threatened with major overhaul for 20+ years. Labour has made it one of their priorities to put leaseholders first.

Key Effects on Landlords

This proposed legislation will override any lease where the ground rent is higher than £250 and/or has escalating provisions (i.e., doubling or RPI).

The intentions behind the cap are to save leaseholders hundreds of pounds a year, keep money in their pockets and tackle the cost-of-living crisis.

The effect on landlords could potentially be hundreds of thousands of pounds. Unlike with the statutory lease extension process set out under the Leasehold Reform, Housing and Urban Development Act 1993, landlords will not be compensated for the loss of their ground rent income.

Annual portfolio income streams will significantly decrease. Assets, whether a small investment portfolio for somebody’s retirement or a large-scale ground rent investor’s portfolio, will likely see a decline in value. 

On the other hand, some may find value in the certainty provided by 40 years of £250 per annum compared to an index-linked increase.

We have already seen institutional landlords challenge the abolition of marriage value in the Leasehold and Freehold Reform Act 2024 under A1P1 (the right to peaceful enjoyment of possessions). We could possibly see the same happen here.

The Draft Commonhold & Leasehold Reform Bill –What Else?

This legislation, once enacted, will take huge strides toward ending leasehold tenures, which many consider to be an archaic and unfair form of homeownership. The bill sets out further historic changes:

  • a ban on new leasehold flats;
  • will move to commonhold and make commonhold the default tenure;
  • ending forfeiture (or the threat thereof) for breach of lease and/or non-payment of service charge and/or ground rent; and
  • repeal of estate rent charges;

What Next?

We continue to be in a state of  ‘watch this space’ but it’s clear the landscape is changing. Lawrence Stephens’ specialist Leasehold Enfranchisement Team will continue to monitor the progress of the Draft Commonhold & Leasehold Reform Bill.

For any specific or tailored advice, please do get in touch with the Leasehold Enfranchisement Team, Director and Head of Leasehold Enfranchisement Claire Allan and Associate Cerys Eyre.

Triple shortlisting for Claire Allan and the Lawrence Stephens’ Leasehold Enfranchisement team

Posted on: May 30th, 2024 by Natasha Cox

Now into its 15th year, the annual Enfranchisement and Rights to Manage Awards has evolved into a prominent event, recognising excellence in the leasehold enfranchisement and right to manage sector.  The eminent and independent judging panel has reviewed all the submissions made and they have now revealed the final shortlist.  This peer-reviewed judging process ensures independent quality in the decision-making. 

As well as the firm being shortlisted in the Solicitors Firm of the Year category, Director and Head of Leasehold Enfranchisement Claire Allan has been personally shortlisted in the Solicitor of the Year and Professional of the Year categories. This triple shortlisting acknowledges Claire and her team’s expertise in advising leaseholders and landlords in this complex field, navigating them through the statutory lease extension or collective enfranchisement process.

Claire’s arrival at the firm has brought together and given focus to work already being undertaken by others through formally establishing the firm’s Leasehold Enfranchisement department. Client feedback confirms the benefit of the enhanced perspective gained by the team through experience of and acting for freeholders, head landlords and tenants.

Claire is actively involved in the real estate market and an active participant in a number of initiatives, including raising awareness of issues identified in the proposed leasehold reform amendments. She mentors and guides less experienced members of the team and more widely through her involvement in industry organisations.

As a consequence of her energy and enthusiasm, the scale and complexity of cases undertaken by her team has increased markedly. Examples include acting for the landlords of a number of West London mansion blocks, head landlords where the freeholder is a significant landed estate, and acting for the tenants on a mid-sized complex collective claim in Covent Garden against a multinational PLC.

The winners will be announced at the awards dinner on 11 July at the Leonardo Royal Hotel, near St Paul’s in London.