Ground rent reform is back in the headlines: what Wandsworth flat buyers need to know
If you are buying a flat in Wandsworth, check the ground rent before you fall for the kitchen. Ground rent reform is back in the news, but the main changes for existing leases are still proposals rather than law.
The government’s draft Commonhold and Leasehold Reform Bill, published on 27 January 2026, would cap most existing ground rents at £250 a year and reduce them to a peppercorn after 40 years.
For now, though, if you buy an existing leasehold flat, the lease you take on still sets what you pay.
That means the ground rent clause, review pattern and lease length all deserve attention before you offer.
There is a second headline worth separating out. The Bill would also support a move to commonhold and ban most new leasehold flats in future. That proposal looks forward. It does not convert existing leasehold flats automatically, so the converted Victorian flat you are viewing in Earlsfield will still be leasehold when you buy it. If the lease side feels murky, start with the difference between leasehold and freehold.
What is actually changing, and when?
Ground rent on most new long residential leases has already gone. Since 30 June 2022, most new qualifying residential leases have had to be granted at a peppercorn ground rent, which means no financial value. Retirement home leases followed from 1 April 2023.
The current Bill targets older leases, the ones granted before the 2022 rules that still carry a real ground rent. The House of Commons Library notes that the government estimates around 770,000 to 900,000 leaseholders pay more than £250 a year in ground rent, with many affected leaseholders in London and the South.
| Change | What it means for flat buyers | Status |
|---|---|---|
| Ground rent on most new leases | Most new long residential leases are already limited to a peppercorn rent | In force since 30 June 2022 |
| £250 cap on existing ground rents | Most existing ground rents would be capped at £250 a year, then fall to a peppercorn after 40 years | Proposed, not yet law |
| Ban on most new leasehold flats | New flats would usually be sold as commonhold rather than leasehold | Proposed, not yet law |
| Existing leasehold flats | Existing flats remain leasehold unless a separate legal route changes that | No automatic conversion |
Timing is the part to treat carefully. The ground rent cap is expected to come into force no earlier than the legislative process allows, with late 2028 previously indicated as the likely timing, subject to parliamentary approval. Do not base your purchase on a reform date that may move. Base it on the lease in front of you.
What this means when choosing a flat
Two flats can look identical and cost you very differently over time. One might have a peppercorn ground rent. The other might charge £400 a year with reviews that double every 10 years. That kind of clause can make a flat harder to mortgage, harder to sell and more expensive to own.
Ask for the ground rent figure, the review wording and the lease length in writing. A short lease can often be fixed, and since 31 January 2025 leaseholders no longer have to wait 2 years after buying before starting a statutory lease extension claim.
If you are weighing areas as well as leases, this guide to where to buy in south west London is a useful starting point. Stamp duty for Wandsworth buyers will shape your real budget too, especially if a lease extension or future service charge costs need to be factored in.
Some of the best leasehold flats never reach the portals, so it is worth knowing how off-market homes in Wandsworth change hands. If you are looking at a shop with flats above rather than a standard flat, that falls closer to buying commercial property, where the legal and lending issues can differ.
Buying a flat to let?
If you are buying as an investment, ground rent is only one line in the maths. The case for Wandsworth as a property investment rests on tenant demand, rental income, service charges, mortgage costs and what landlords are actually earning.
Energy standards matter too. The current legal minimum remains EPC E for most domestic private rented homes, but the government has set out plans to raise standards towards EPC C by 2030. That makes getting a buy-to-let ready for EPC C a sensible forward-planning step.
You will also be competing with other properties to let in Wandsworth. Once you own, a fully managed lettings service keeps things hands-off, a tenant find service suits more active landlords, and a letting and rent collection service sits between the two.
Frequently asked questions
What is ground rent on a flat?
Ground rent is a charge a leaseholder pays to the freeholder under the lease. It is separate from service charge.
Is ground rent being abolished?
For most new leases, it has already been reduced to a peppercorn. For existing leases, the £250 cap and later peppercorn rent are proposed but not yet law.
Should I buy a leasehold flat in 2026?
Yes, if the lease stacks up. Check the lease length, ground rent, review terms, service charges and likely resale issues before offering.
What is a peppercorn ground rent?
It means a nominal rent with no real financial value.
Thinking of buying in Wandsworth?
If you want help reading a lease or finding a flat that stands up to scrutiny, the Wandsworth estate agents at Lets Find A Home can guide you through it. Browse current flats for sale in Wandsworth, ask us to check a ground rent before you offer, or call 020 8870 5800 for a straight answer.
Click here to schedule an appointment with Matt, founder of Lets Find A Home