Website Cookie Policy

We use cookies to give you the best possible online experience. If you continue, we’ll assume you are happy for your web browser to receive all cookies from our website.
See our cookie policy for more information.

Practice Areas

More Information

Leeds: 0113 244 6100

Sheffield: 0114 267 5588


Send us an enquiry

Ground rents

05 June 2017

Unfair hidden ground rent costs on new builds has hit the press recently. We consider the effect on community-led housing groups using leaseholds.


The press has written a lot recently about unfair hidden ground rent costs on new builds.  Commercial developers have been issuing long leaseholds with ground rents that double every few years.  The starting level for the ground rent tends to be very minimal but soon escalates to extremely high levels.  It is not clear whether the developers have been doing this by accident or by design but it has meant that various properties have become all but unsaleable.  Before the announcement of the general election, there were indications from MPs that they would ask Parliament to consider a ban on new residential leaseholds to avoid such issues.

What is the impact on community-led housing groups?

This, of course, would have an impact on community-led housing groups who often depend on a leasehold structure.  The announcement of the general election, together with moves by developers such as Taylor Wimpey to help their tenants, may have taken the spotlight off this issue.  However, please keep an eye on the press and consider raising any concerns you may have with your MP if it looks like a ban on new leaseholds may be proposed.

Other property law points that community-led housing groups ought to be aware of:

Unfair hidden ground rent costs on new builds - We consider the effect on community-led housing groups using leaseholds

Did you know that landlords (incl community housing landlords) are obliged to consult with tenants under 'long term tenancy agreements'?

Receive updates

If you are involved with a community-led housing group and would like to receive our news bulletins and details of events, please send us a quick email here

We will not pass on your details to any third party and you may unsubscribe from the mailing list at any time.


If you would like to discuss any aspect of this article further, please contact Emma Ridge on 0113 244 6100.

You can also keep up to date by following Wrigleys Charities and Social Economy team on Twitter here

The information in this article is necessarily of a general nature. Specific advice should be sought for specific situations. If you have any queries or need any legal advice please feel free to contact Wrigleys Solicitors



Emma Ridge View Biography

Emma Ridge


17 Apr 2024

Independent schools’ development: policies for navigating the modern fundraising landscape

Independent schools face fundraising challenges in a tough climate. Learn best practices for compliant and effective fundraising policies.

09 Apr 2024

Charities Act 2022: new provisions introduced

What do the latest provisions mean for your charity?

09 Apr 2024

Cohousing Series: Navigating the Planning System

This article is the latest in our cohousing series following our team member as she develops her own cohousing scheme.