The Leasehold Reform Bill, which looks to restrict ground rents on newly created long residential leases to one peppercorn per year, has passed through the Commons unopposed.

It must now undergo further examination by MPs before it can be passed into law.

“The Bill will make home ownership fairer and more transparent for future generations of leaseholders,” said Eddie Hughes, who is the under-secretary of state for rough sleeping and housing, to the House of Commons.

He continued: “We will do this by reducing the ground rent on new residential long leases where a premium is paid to a peppercorn. I am sure that this change, which will benefit thousands of future leaseholders, will be welcomed right across the House.”

He branded the issue of “spiralling” ground rents and “onerous” conditions a “nightmare” for some leaseholders”.

Cavendish Legal Group litigation partner Jonathan Frankel welcomes the news. He says: “It is incredibly positive that the Leasehold Reform Bill has passed its first stage in the Commons unopposed. It clearly shows the direction of travel away from exorbitant leasehold rents, down to nothing.

“Anyone buying a new property now also has the reassurance that developers can only charge a peppercorn rent on all new leasehold properties, which is effectively zero.

“The same applies to anyone extending their leasehold under the statutory route in that they will be able to reduce the amount they pay to next to nothing. This is currently subject to a two-year ownership provision. Whether that onerous condition stays put through the parliamentary reforms remains to be seen.

“The government now needs to go a step further and introduce nothing more than a peppercorn leasehold rent for all existing leaseholds.”