UK Act of Parliament 2022 United Kingdom

Leasehold Reform (Ground Rent) Act 2022

What this means for your business

2 obligations
1 penalties
1 guides
Applies to
United Kingdom
On this page
2 compliance obligations, 1 practical guide
Read full text on legislation.gov.uk

What you must do

2 compliance obligations under this legislation.

Payments and fees 1

Pay interest on court‑ordered prohibited rent

If a tribunal orders you to repay prohibited rent under the Leasehold Reform (Ground Rent) Act, you must also pay interest on that amount. The interest runs from the date each illegal rent payment was made until you actually pay, using the statutory rate set by the Judgments Act 1838, and it cannot exceed the rent you owe. You must pay the interest by the date the tribunal specifies.

Landlord/Property Owner s.14 Trading Standards When a tribunal orders repayment of prohibited rent under s13 of the …

Offences and prohibitions 1

Impose prohibited ground rent

Fine up to £30,000

If you, as a landlord (or former landlord), charge ground rent that breaches the rule set out in section 3(1) of the Leasehold Reform (Ground Rent) Act 2022, the enforcement authority can levy a financial penalty. The fine will be at least £500 and can be up to £30,000 for each penalty imposed. A single penalty may cover multiple breaches on the same lease or across several leases, but you cannot be fined twice for the same breach by different authorities.

Landlord/Property Owner s.9 Trading Standards

Penalties for non-compliance

1 penalty under this legislation.

Significant fine

Impose prohibited ground rent

Fine up to £30,000

Summary only s.9 Penalises: Impose prohibited ground rent

Practical guidance

Our guides explain how to comply with the requirements above.

Comply with the ground rent ban on new residential leases

What landlords and property developers must do to comply with the ground rent ban. Covers which leases are affected, exemptions, …

Sections and provisions

27 classified provisions from this legislation.

1 Duties 1 Offences and penalties 5 Powers 7 Definitions 3 Exemptions

Duties 1

  • s.14 Interest on amount ordered to be paid under section 13

Offences and penalties 1

  • s.9 Financial penalties

Powers 5

  • s.2 Excepted leases
  • s.11 Interest on amounts ordered to be paid under section 10
  • s.13 Recovery of prohibited rent by tenant
  • s.16 Assistance
  • s.20 Consequential amendments

Definitions 7

  • s.3 Prohibited rent prohibited rent
  • s.4 Permitted rent: general rule peppercorn rent
  • s.7 Term reserving prohibited rent treated as reserving permitted rent maximum permitted rent
  • s.8 Enforcement authorities enforcement authority
  • s.15 Application to appropriate tribunal as to effect of section 7
  • s.17 Interpretation of enforcement provisions
  • s.22 Interpretation long lease dwelling premium

Exemptions 3

  • s.5 Permitted rent: shared ownership leases
  • s.10 Recovery of prohibited rent by enforcement authority
  • s.21 Regulations