The recent announcement that UK ground rents will be capped at £250 a year under new leasehold reform has the potential to reshape the property landscape for millions of homeowners across England and Wales, and perhaps even spark a wave of relocation activity.
The draft Commonhold and Leasehold Reform Bill unveiled in January 2026 proposes capping ground rents at £250 for existing leaseholders, with a gradual move to a nominal “peppercorn” rent after 40 years. The government says this could save tenants and flat owners thousands of pounds over the long term; and crucially, remove barriers to selling or remortgaging properties where high rents previously deterred potential buyers.
This shift has many homeowners, particularly in urban centres like London, considering their next steps, including whether to move home altogether.
What the Ground Rent Cap Means for Leaseholders
A key driver behind the reform is to address the longstanding issue of unaffordable and escalating ground rents that have left some properties effectively stuck on the market. Under the new proposals:
- Ground rents for existing leasehold properties will be capped at £250 annually.
- After about 40 years, the permitted rent level should fall to a peppercorn (effectively zero).
- New leasehold flats may no longer be created under this system, making commonhold ownership more common.
These measures aim to remove financial and legal obstacles that can hold up property sales, something that often leads owners to delay moving or upgrading their homes.
Could the Reform Lead to More Home Moves?
For many current leaseholders; especially those in busy markets like London, this change could prompt a fresh look at relocation plans. Reasons include:
- Increased affordability: Lower ongoing charges can make a new property more financially accessible.
- Easier resale and remortgaging: Properties that were hard to sell because of high rent clauses could now attract more buyers.
- Lease extensions and transitions: Some homeowners may feel encouraged to extend or adjust lease terms knowing ground rent liability is capped.
In high-demand cities and commuter belts where housing turnover affects everyday life, these changes could shift how and when people choose to move.
Movevan: Supporting Your Move Every Step of the Way
If you’re thinking about moving following the leasehold changes, Movevan can help take the stress out of the process:
- Moving van rentals in London – Flexible and reliable transportation for your belongings.
- House removal company in London – Professional support for hassle-free relocations.
- Furniture delivery service – Safe delivery of new purchases to your home.
- Packers and movers – Efficient packing and handling by trained experts.
- Clearance – Clearing unwanted items responsibly before you move.
Storage – Secure short- or long-term solutions for your possessions.
Planning Ahead: Practical Next Steps
Whether you’re a leaseholder in London or elsewhere in England or Wales, it’s worth keeping an eye on the progress of the legislation. The draft bill is still subject to parliamentary scrutiny and may evolve before becoming law.
For anyone contemplating a house move partly because of these reforms, now could be a smart time to start planning; not just in terms of property choice, but also logistics like removals, deliveries and storage solutions.
If leasehold reform has you re-evaluating where you live, Movevan is here to support every step of your move with care and efficiency.
Credit: Grand Pinnacle Tribune
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