Closing the Gap Between the Headlines and Reality of Ground Rent Reform

Regardless of where people sit on the reform debate, the immediate challenge is the same: a disconnect between public discussion and the legal position today.

What we’re seeing on the ground

Across portfolios, a consistent pattern is emerging:

• Ground rent payments being challenged on the assumption reform is already in force

• Questions around lease terms that remain legally binding

• Hesitation around lease extensions, with decisions being paused in anticipation of future change

This is rarely driven by bad intent. Ground rent reform has been discussed for years, and recent coverage has understandably reinforced the perception that change is imminent or already happening.

Why the interim period matters

The period between announcement, legislation and implementation is where operational pressure could build.

When leaseholders act on headline-led interpretations rather than fact, routine processes become more difficult to manage. Ground rent collection becomes harder, administrative workload increases, and avoidable friction is introduced. What should be straightforward can quickly turn into prolonged correspondence or escalation, simply because the legislative process is not widely understood.

This makes clear, calm and factual communication increasingly important during this interim phase.

What has — and hasn’t — changed 

There is broad recognition that reform is coming, and all stakeholders will no doubt welcome the end to a long period of uncertainty. Operationally, however, the focus needs to remain on separating future intent from current law. 

At present:

• The legislation has not passed

• The detail remains subject to parliamentary scrutiny and amendment

• Implementation will not be immediate, even once approved

Current expectations across the sector suggest that meaningful change is unlikely to take effect until late 2028 at the earliest.

Until then:

• Existing leases remain legally enforceable

• Ground rent remains payable where set out in the lease

• Day-to-day obligations remain unchanged

Despite the volume of commentary, the legal position today is unchanged.

Focusing on understanding, not opinion

The most constructive conversations happening across the industry — including with bodies such as the TPI — are focused on helping people understand what applies now.

Supporting clients to communicate clearly with leaseholders, explain what has been proposed, and clarify which decisions should not be delayed helps reduce friction and keeps attention on practical responsibilities. This isn’t about taking a position on reform, but about managing obligations appropriately until the legal framework genuinely changes.

Looking ahead

Ground rent reform will arrive in time, but the period before implementation is likely to be prolonged and, at times, challenging for those operating in the middle.

During that window, clarity will matter more than commentary. Organisations that prioritise clear, factual communication will be better placed to manage expectations, maintain trust and avoid avoidable disputes.

For now, the practical step is straightforward: help leaseholders understand the difference between headlines and law, and continue to operate on the basis of what applies today.

Felix Keen, Director of Asset Management at Innovus