Historically, ground rents were low, no more than say £50 per year. However, in the last few years, housebuilders have started to increase ground rents to an initial charge ranging from £250 to £500 a year. They have also added clauses in the lease that allow them to review the ground rent periodically, for example, every five, ten or 25 years.
Typically the review clause allows the freeholder to increase the ground rent at each review. Problems have arisen because housebuilders have included clauses in the leases which provide for ground rents to double or increase with the Retail Price Index (RPI).
If you are a leaseholder who purchased a new build property in the last ten years you should check your lease to see what it says about ground rent and what you can expect to pay.