Cap on ground rents unlikely to bring flats back into favour

27th January 2026

The £250 a year cap on ground rent charges announced by the Prime Minister on Tuesday will lower the running costs for some owner-occupiers and private landlords of leasehold homes, particularly flats, but the savings will be small. As a result, the underperformance of flat prices in recent years will probably continue and the supply of rental properties will stay tight.

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