A ban on charging ground rent on leases in England and Wales is to come into force on 30 June, the government has confirmed.

Anyone buying a home on a new long lease will be freed from these annual costs, which could help homeowners manage their bills as they face cost of living increases.

Sometimes worth hundreds of pounds a year, ground rent charges provide no clear service in return and can be set to escalate regularly, with a significant financial burden for leaseholders.

Landlords will be banned from charging ground rent to future leaseholders under a new law that will lead to more transparent homeownership for thousands of homebuyers.

In preparation, many landlords have already reduced ground rent to zero for homebuyers starting a new lease with them.

The government has suggested that anyone preparing to sign a new lease on a home in the next two months should speak to their landlord to ensure their ground rent rate reflects the upcoming changes.

“This is an important milestone in our work to fix the leasehold system and to level up home ownership,” said Leasehold Minister, Lord Stephen Greenhalgh. “Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers.

“I welcome the move from many landlords who have already set ground rent on their new leases to zero and I urge others to follow suit ahead of this becoming law.”

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