12/10/2026
Ground rents are not becoming a peppercorn, whatever you may have read.
For new leases that change happened back in 2022. For existing leases the proposal is a cap of ÂŁ250 a year, and the peppercorn only arrives forty years after that. The Bill has not yet reached Parliament, and the cap is unlikely to take effect before 2028.
Commercial leases are outside the scheme altogether.
Dr Aamir Nawaz explains where things actually stand, and what it means for anyone holding a mixed use building.
https://www.trentlaw.co.uk/post/not-yet-a-peppercorn-the-ground-rent-cap-and-where-commercial-leases-stand