The government is expected to bring forward its ground rent cap by a year, with legislation now likely to target late 2027 instead of 2028. The move would speed up one of the biggest leasehold cost reforms now facing landlords with flats in England and Wales.
The latest shift follows fresh pressure from MPs and the Housing, Communities and Local Government Committee, which has urged ministers to move faster on leasehold reform and cut the ongoing cost burden on leaseholders. For landlords holding leasehold flats, that matters because ground rents can still affect resale values, lending and the overall running cost of an investment.
For landlords, the immediate issue is not just lower future charges. A faster timetable would also bring forward another regulatory change in a market where flat investors are already dealing with cladding rules, service-charge friction and slower transactions.
Why the timetable has moved
Industry reports on Tuesday said ministers are now looking at a late-2027 start date for the £250 cap, rather than the later window previously expected. That would line up with growing political pressure to show quicker progress on leasehold after the publication of the draft reform Bill earlier this year.
The committee’s recent recommendations went further than a simple technical update. MPs said reform should move quickly enough to give leaseholders and the wider market clarity, especially where older lease terms are still creating cost and saleability problems.
Why flat landlords should pay attention now
Many buy-to-let investors in flats will not see an instant cash saving, especially where ground rents are already modest. But the bigger issue is marketability. Higher or escalating ground rents can still complicate remortgaging, buyer demand and exit plans, so a clearer statutory cap could remove one more point of friction.
This follows Landlord Knowledge’s report on MPs pushing faster leasehold reform for flat landlords, which highlighted how reform risk is feeding directly into landlord costs and long-term planning. That pressure has since broadened, with ministers now under stronger scrutiny to show a delivery timetable.
Landlords selling leasehold stock also need to read this alongside Landlord Knowledge’s recent coverage of Grenfell-related reforms for flat landlords. Taken together, the picture is clear: leasehold investment is becoming more policy-driven, and delay is no longer a neutral assumption.
Ministers have not yet published final legislation, but the government’s draft Commonhold and Leasehold Reform Bill has kept the timetable in focus ahead of the summer recess. If the timetable holds, landlords with leasehold flats may need to revisit disposal plans, refinancing conversations and any assumptions built into portfolio valuations sooner than expected.
What this means for landlords
- If you own leasehold flats: review whether ground rent terms are already affecting refinancing or saleability.
- If you’re planning an exit: a firmer 2027 timetable could improve buyer confidence in some blocks.
- Watch for: the final Bill wording, because the detail will decide which leases benefit and when.
- Bottom line: leasehold reform is moving from political promise to investment factor.
Editor’s view
Ground rent reform will not fix every problem in the flat market, but it does remove one of the easiest costs for ministers to target. For landlords, the bigger lesson is that leasehold policy risk is speeding up, not fading away.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 09 June 2026
Sources: UK Government, Housing, Communities and Local Government Committee
Related reading: MPs push faster leasehold reform as flat landlord costs stay in focus
