1. Capping ground rents at a peppercorn: This would essentially set the ground rent to zero.
2. Setting a maximum financial value for ground rent: Establishing an upper limit on the monetary value of ground rent.
3. Capping ground rents at a percentage of the property value: Introducing a cap based on a percentage of the property’s overall value.
4. Limiting ground rent to the original value when the lease was agreed: Restricting ground rent to the initial agreed amount at the start of the lease.
5. Freezing ground rent at current levels: Maintaining the current ground rent levels without any future increases.

This initiative is part of the government’s broader efforts to improve the conditions for leaseholders. The Ground Rent Act 2022 has already limited ground rent on new leases to one peppercorn per year, effectively eliminating it for new leases. The upcoming Leasehold and Freehold Reform Bill, set to be introduced to Parliament soon, aims to enhance transparency in the leasehold system and protect millions of leasehold property owners.

The public consultation will remain open for 10 weeks, allowing stakeholders and the public to provide feedback on the proposed options. The government will carefully consider the responses received, and pending the outcome of the consultation, reforms will be pursued through the Leasehold and Freehold Reform Bill. An impact assessment for the consultation was published on December 6, 2023.