Ground rents for leaseholders to be capped

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Ground rents for leaseholders to be capped

The government has announced that ground rents in England and Wales will be capped at £250 a year for leaseholders.

Under the plans, they will fall to a peppercorn rent after 40 years, meaning no payment at all.

The cap will apply to most residential leasehold agreements signed before July 2023, removing future shocks for homeowners budgeting over the long term.

No new leasehold flats

The Prime Minister, Sir Keir Starmer, announced the cap in a TikTok video, saying: “I’ve spoken to so many people who say this will make a difference to them worth hundreds of pounds.”

The reforms will be published in the draft Leasehold and Commonhold Reform Bill, which will be introduced today (Tuesday).

Developers will also be barred from selling most new flats as leasehold.

Instead, new apartment blocks will be built under a commonhold structure, where residents collectively own and manage the building and the land beneath it.

The government is consulting on how the shift will work in practice, including limited exemptions and transition arrangements.

Convert to commonhold

Existing leaseholders are not excluded, and the proposals will make it easier for current flat owners to convert from leasehold to commonhold if they choose.

Doing so will allow them to access the same rights as those buying new homes.

The government is also moving to end forfeiture, a long-standing rule that can see homeowners lose their property over relatively small debts.

In its place, a court-led process with tighter safeguards will apply only in more serious cases.

Transparency on fees

Further measures aim to improve transparency around service charges and building costs.

Bills will be clearer, routes to challenge unfair fees strengthened and landlords or managing agents held to higher standards, reducing unexplained increases.

Reforms will also extend to nearly two million households living in freehold homes on privately managed estates.

They currently pay additional charges for shared spaces, a practice often labelled ‘fleecehold’.

Ministers say they want to curb its future use and give homeowners more protection.

Other leasehold plans

Other plans include banning a century old legal power that allows harsh penalties for missed payments.

The government will also introduce standardised estate charge statements, enabling tribunals to replace failing management firms.

There will also be a proposal on whether resident-run management should become the default.

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Rent Guarantee Insurance – Does It Really Work for Landlords?

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Rent Guarantee Insurance – Does It Really Work for Landlords?

Tenant default is one of the biggest risks for landlords. Even with strong referencing, job losses, illness, or disputes can leave tenants unable or unwilling to pay. Rent guarantee insurance (RGI) promises to protect landlords against these losses, but the detail of each policy makes a huge difference. This article explains how RGI works, what’s usually covered, common exclusions, and what landlords should check before buying.

What Rent Guarantee Insurance Covers

A typical RGI policy pays landlords when tenants stop paying rent, usually from the date of default until the tenant vacates or possession is obtained. Cover usually includes:

• Monthly rent payments – up to a specified limit (e.g. £2,500 or £3,000 per month).
• Maximum duration – often 6 or 12 months of unpaid rent.
• Legal expenses – to fund possession proceedings and eviction if necessary.
• Alternative accommodation – occasionally included if tenants must be rehoused during legal processes (less common).

Eligibility and Referencing Requirements

RGI is not a blanket safety net. Policies are only valid if strict referencing criteria are met at the start of the tenancy. Typical requirements include:

• Full credit check – confirming no adverse CCJs or bankruptcies.
• Employer’s reference – verifying stable employment and sufficient income.
• Previous landlord reference – for existing tenants moving between rentals.
• Guarantor – sometimes required for students, self-employed tenants, or those with weaker credit.
• Deposit compliance – correct registration of deposits or valid deposit replacement schemes.

Failure to meet or document these requirements is the most common reason claims are declined.

Exclusions to Watch For

• Pre-existing arrears – cover only starts for arrears after the policy is in place.
• Unreferenced tenants – if references aren’t completed to the policy standard, claims may fail.
• Tenancy type restrictions – some policies exclude HMOs, students, or DSS tenants unless approved in advance.
• Delays in notification – landlords must notify insurers quickly once arrears begin, often within 30 days.
• Void periods – rent guarantee only covers arrears, not general voids between tenancies.

RGI vs Loss of Rent Insurance

Landlords often confuse rent guarantee with loss of rent cover. They are very different:

• Rent guarantee – covers unpaid rent due to tenant default.
• Loss of rent – covers loss of income after an insured peril (e.g. fire, flood) makes the property uninhabitable.

Both types of cover are valuable, but they serve different purposes. Savvy landlords often hold both.

Case Example

A landlord let a flat to a young professional. Six months in, the tenant lost their job and stopped paying rent. Because the landlord had completed full referencing and notified the insurer within the policy deadline, rent guarantee insurance paid the monthly rent for nine months until possession was regained. The policy also covered legal fees for eviction, saving the landlord thousands of pounds. Without RGI, the landlord would have lost over £12,000 in income.

Checklist Before Buying RGI

• Confirm the monthly rent limit covers your tenancy.
• Check the maximum payout period (6, 12, or more months).
• Review eligibility rules – referencing, guarantors, tenancy type.
• Understand the notification window for arrears.
• Clarify whether the policy includes legal expenses and up to what limit.

Final Thoughts

Rent guarantee insurance can be a lifesaver for landlords, but only if the referencing process is followed and claims are reported promptly. For those willing to maintain good records and act quickly on arrears, it provides valuable cash flow protection. Always check the small print before relying on it.

Request your quote or call-back

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

Alternatively, you can use the form below to request one of our team to give you a call back.

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Publication date: Tuesday 27 January 2026

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Tenant group urges freeze on evictions and rent increases following floods

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Property118

Tenant group urges freeze on evictions and rent increases following floods

A tenant group has demanded a freeze on evictions and rents during any post-flood repairs.

ACORN says there is no national voice for tenants on flooding, and renters bear the brunt of the consequences.

However, ACORN fails to mention that renters can take out insurance to protect their belongings in case of flooding.

Freeze on evictions and rent rises

In a policy document, the group says: “In England, landlords are responsible for making repairs to a property after flooding, and tenants can claim for a rent reduction while the repairs are carried out. While this is a good thing in principle, it is gravely undermined by the lack of protection from eviction for the tenants through this process.

“People will stay in terrible conditions because they are worried they will be evicted if they get the landlords to make the necessary repairs. Tenants should not have to choose between living in a potentially dangerous property and risking eviction.”

ACORN is now calling for a freeze on rents and evictions during flooding to help tenants and

The group adds: “There should be a freeze on evictions and rent rises during any improvement works and after they have been completed for a certain period, in order to ensure tenants feel empowered to demand repairs and to make sure that costs are not passed onto them.

“Until such national protections are in place, housing providers with properties in flood-prone areas should introduce policies that guarantee no evictions or rent hikes in the event of flooding.”

The group adds that funds should be made available to community organisations such as ACORN for flood resilience projects.

Only 46% of tenants hold contents insurance

However, ACORN fails to mention that if a rental property is flooded, it is the landlord’s responsibility to pay out of their own pocket for repairs to the property and any landlord-provided furnishings, and landlord insurance will typically cover alternative accommodation while repairs are carried out.

For tenant belongings, tenants need to take out contents insurance themselves to protect their belongings. However, as previously reported by Property118, only 46% of the UK’s private tenants currently hold contents insurance.

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