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.
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Related terms
Section 47 Notice (Rent Demand Address)
Section 47 of the Landlord and Tenant Act 1987 requires a landlord’s name and address (or that of an agent in England and Wales) to appear on every rent demand for a residential property. If the demand omits this, no rent is legally due until a Section 48 notice (or compliant rent demand) is served. Routinely missed by individual landlords self-managing without a template; the breach blocks rent recovery and pauses any Section 8 ground 8/10/11 arrears clock until cured.
Sub-letting
A tenant granting occupation rights to a third party (a sub-tenant) while the original tenancy continues. Most ASTs prohibit sub-letting without written landlord consent; under the Housing Act 1988 unauthorised sub-letting is ground 12 (discretionary) for possession and may also be a banning-order offence under section 79 of the Housing and Planning Act 2016 if rent is taken from the sub-tenant beyond the rent paid to the landlord (“rent-to-rent fraud”). The Renters Rights Act 2025 retains sub-letting consent as a contractual landlord right with a reasonable-refusal threshold.
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.
Form 3 (Notice of Seeking Possession, Section 8)
The prescribed form a landlord uses to start a Section 8 possession claim under the Housing Act 1988. It identifies the tenancy, the grounds being relied on (Schedule 2 grounds 1–17) and the date by which the tenant must give up possession. Notice periods vary by ground (4 weeks for ground 14 anti-social behaviour, 4 months for ground 1A landlord-sale post-RRA 2025, etc.). A defective Form 3 — wrong ground, wrong notice period, missing prescribed wording — is the most common reason possession claims fail at first hearing.
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.