We support the government’s intention to change to peppercorn ground rent. However, it is not clear to us why the government has decided that a 40-year transitional period before a change to peppercorn is the most justified and fair policy. The government has said that it judges 40 years to represent a fair balance between the competing interests, but it has not presented sufficient evidence to justify why 40 years is the optimum period 102 to maximise the benefits for leaseholders whilst minimising the proportional financial transfer from freeholders to leaseholders. The government’s modelling shows that estimated value transfer is not linear across different transitional periods. We require more comprehensive and accurate data to come to a definitive judgement on the optimum transitional period. (Conclusion, Paragraph 73)