Ground Rent
A payment due from a leaseholder to the freeholder. Ground rents on long leases granted on or after 30 June 2022 are capped at a peppercorn (effectively zero) under the Leasehold Reform (Ground Rent) Act 2022.
At a glance
- Cap (new leases from 30 June 2022)
- Peppercorn (effectively zero)
- Law
- Leasehold Reform (Ground Rent) Act 2022
Full guide
Read the complete landlord guide on Ground Rent
Deadlines, fines and step-by-step compliance in our in-depth resource.
Open full guideWhy Ground Rent matters for landlords
Ground rent largely stopped existing for new long residential leases granted after 30 June 2022, but landlords holding older leases still see escalating ground rents that have driven mis-selling claims against some freeholders. The peppercorn cap does not retrospectively reset existing leases — relief there depends on voluntary freeholder negotiation or pending leasehold reform.
Related terms
Accelerated Possession
A fast-track court procedure used under a Section 21 notice in England and Wales. Abolished for new claims from 1 May 2026 because Section 21 no longer exists. Possession is now pursued under Section 8 using a specified ground.
Arrears (Rent Arrears)
Unpaid rent that is past its due date. Ground 8 of Schedule 2 to the Housing Act 1988 (mandatory) requires at least 3 months of rent arrears under the Renters Rights Act 2025 (previously 2 months). Grounds 10 and 11 remain as discretionary grounds.
Mandatory Ground
A ground for possession under Schedule 2 of the Housing Act 1988 that the court must grant if proved. Examples include Ground 1 (landlord moving in), Ground 1A (sale) and Ground 8 (serious arrears). Contrast discretionary grounds, where the court decides if possession is reasonable.
Notice Period
The minimum period a landlord must give before seeking possession under Section 8. Most grounds now require 4 months' notice under the Renters Rights Act 2025, anti-social behaviour can be served with immediate effect, and Ground 8 arrears notice is 4 weeks.
Section 21 Notice
The no-fault eviction notice under Section 21 of the Housing Act 1988. Abolished for new notices from 1 May 2026 under the Renters Rights Act 2025. Landlords must now use Section 8 with a specified ground.
Section 8 Notice
A possession notice served under Section 8 of the Housing Act 1988 citing a specific ground. From 1 May 2026 this is the only route to possession in England. Common grounds: Ground 1 (landlord moving in), Ground 1A (sale), Ground 8 (3 months' arrears).