Government sets out leasehold reforms including broadband rights and ground rent cap

Wow! Finally, meaningful leasehold reform… Tenants can ask for faster broadband… and freeholders don’t have to provide it!

However, the government has confirmed that the £250 cap on ground rents is expected to come into effect in 2028, with ministers claiming it will “end ground rents for good”.

How does that end ground rents for good, when it will remain for the next 40 years after 2028? A further £10,000 for freeholders, from every existing leaseholder! And why wait until 2028?

“Leaseholders will have a legal right to request fast broadband connections, with freeholders unable to unreasonably refuse.”

Slightly off tenant topic but wouldn’t mind a bit of clarification.

If Leaseholders (owner-occupiers) each have their own broadband connection with whatever supplier does this mean that a Freeholder/Joint Freeholders will have to provide a communal broadband system/connection? Or just that a Freeholder/Joint Freeholders cannot stop a Leaseholder from having broadband installed to their flat?

Reply to the comment left by Judith Wordsworth at 15/05/2026 – 16:16
I am pretty certain that such an installation would need a formal fire certificate – I can’t see that being a cheap option, just imagine 100 unique cables being routed in a tower block.

Reply to the comment left by Judith Wordsworth at 16:16
Judith, the freeholder can’t prevent the installation of broadband by an Internet Service Provider, their subcontractor or Openreach the FTTP Gigabit fibre optic provider. Under Alt-Net licensing or Project Gigabit another FTTP provider such as Cityfibre might replace Openreach. The customer relationship is between the Leaseholder or Tenant who is resident in the property, and the ISP.
So this is only changing the Freeholder right to object. It’s a minor simplification. It doesn’t change that Gigabit FTTP is only available to about 70% and the rest can only get FTTC at much lower speeds typically 80mb or get mobile broadband.
With 5G stand alone the resident can get high speeds up to Gigabit on the mobile network instead of a wired connection. Obviously mobile means no wires external to the property as mains electricity already exists to power the 5G router. It might require an external antenna for mobile reception, usually small.
Usually the use of local radio WiFi means no cables inside the property, howeverit gets there. Some may prefer network cables between the router and devices, but modern WiFi makes that very unusual.
In summary this change has no impact on the availability of FTTP coverage which is the main barrier to Gigabit just prevents a minority of Freeholders being able to block where FTTP availability would otherwise be feasible.
Political showboating!

Reply to the comment left by Paul Essex at 15/05/2026 – 21:06
Paul, most blocks have service spaces and conduit that supports a scalable approach in floors and wings of large buildings. So there’s a local cable splitter on each floor that connects to the external cabinet and each property on the floor. In the worst case of older blocks without service spaces the cable would still be externally routed to each property and in through a single access point such as a window frame, and so to a wall socket. That’s typical of providers such as Virgin Media that connects a block because residents would then contract with VM. They take the risk on how many residents want fast Internet.

Obviously the Freeholder has to agree to that but pays nothing for the work, just accepts more cables and informs buildings insurance. Not material to the property condition as building regulations must be upheld.

I’ve not seen Fire Safety being an issue as these are proven designs and standards.

Reply to the comment left by PAUL BARTLETT at 15/05/2026 – 23:22
Thank you.

Yeah this is exactly what we was waiting for. Not, and it was the previous government that started the process and the current labour one that has dragged it’s heals.

What leaseholders are waiting for are:
Lease extensions to be 990 years
The marriage allowance removed
The requirement to pay freeholder legal fees to be abolished.
Stricter controls on management companies and easier process to either RTM or choose management companies.

Reply to the comment left by Leigh Andrews at 17/05/2026 – 07:52
Don’t forget the ground rent issue. Even at £250 (whenever that happens!) it won’t resolve the inability to obtain a mortgage if the ground rent is more than 1% of the property valuation. That applies to the majority of flats.

Reply to the comment left by NewYorkie at 17/05/2026 – 14:23
Interesting point. A possible block on leveraged investment!

The Leasehold Reform was supposed to bring a peppercorn ground rent, possibly even zero.

This is an advantage for Right To Buy property where local authorities usually set a peppercorn ground rent e.g. £10 per annum and never increase it because their leverage is on Service Charges and Major Works that enable them to treat Leaseholders as a money box to be raided at will.
However Valuation Tribunal applies so there is some recourse..

Reply to the comment left by Judith Wordsworth at 15/05/2026 – 16:16
Latter, I assume.

These law makers don’t live on the same land as us leaseholders. No scoobie do!