Ground rent charges on new residential leases will be banned in England and Wales from 30 June 2022.
The Government said the move would stop homeowners from paying these expensive annual costs, which can escalate regularly with no clear service in return.
The new law will also apply to retirement homes, with this ban coming in from 1 April 2023.
Leasehold minister, Lord Stephen Greenhalgh, said: 'This is an important milestone in our work to fix the leasehold system and to level up home ownership. Abolishing these unreasonable costs will make the dream of home ownership a more affordable reality for the next generation of home buyers.
'I welcome the move from many landlords who have already set ground rent on their new leases to zero and I urge others to follow suit ahead of this becoming law.'