Justice for Property Rights has welcomed the Government’s continued focus on reforming the leasehold system ahead of the King’s Speech, but urges ministers to adopt a balanced, evidence-led approach that protects both leaseholders and the many individuals who rely on ground rent income.

The campaign group – which says it represents a broad coalition of property owners, small investors and pensioners – said reform is both necessary and widely supported, but warned that poorly targeted measures risk undermining confidence in the UK’s long-standing system of property rights.

Ground rents are a long-established part of leasehold property contracts, forming part of the overall consideration paid for a lease rather than a fee for services.

While issues have arisen in specific cases, particularly involving escalating rents, these have already been subject to regulatory intervention and market correction in recent years.

Justice for Property Rights is calling on the Government to build on this progress by focusing reform where it is genuinely needed, rather than introducing blanket measures that treat all arrangements as problematic.

Public debate has often focused on large institutional landlords, but in reality, many freeholds are owned by:

• retirees relying on stable, long-term income
• families who have invested savings over decades
• small-scale landlords and resident-owned freehold companies

These groups are particularly exposed to sudden policy changes and lack the resources to absorb significant losses. 

“Reform must not come at the expense of ordinary savers,” said a spokesperson for Justice for Property Rights. “Thousands of individuals have made lawful investments based on clear contractual terms. Any changes must respect those rights and provide fair treatment.”

The group also highlighted the risk that blunt policy tools, such as extinguishing and capping  ground rents along with devaluing the price of lease extensions, could create significant and unintended distributional effects.

Analysis shows that in some high-value property cases, these changes could result in substantial financial windfalls for wealthy leaseholders, including overseas and in some cases shady investors, while simultaneously removing income streams from taxpaying UK-based individuals and entities.

“This is not simply a question of freeholders versus leaseholders,” the spokesperson added. “Without careful design, reforms could result in large-scale transfers of value to those least in need of support.”

A central concern remains the absence of a transparent and consistent approach to compensation.

To date, there is no published methodology defining “fair value” or how losses arising from changes to existing contracts would be assessed. This lack of clarity risks:

• legal uncertainty and potential challenges
• reduced investor confidence
• wider implications for the UK’s reputation for stable property rights

Justice for Property Rights is urging the Government to establish a clear, legally robust compensation framework as part of any reform package.

The campaign group is calling for legislation that:

• Targets genuinely unfair practices rather than applying blanket measures
• Protects small investors and pensioners alongside leaseholders
• Distinguishes between historic, lawful arrangements and abusive cases
• Provides clear and fair compensation mechanisms
• Maintains confidence in the UK’s legal and property systems

Justice for Property Rights reiterated its support for a modernised housing system, including the long-term transition to commonhold, but cautioned that immediate reforms must be practical, proportionate, and grounded in economic reality.

“Reform what is unfair, but respect what is lawful,” the spokesperson said. “That principle must sit at the heart of any new legislation.”