The Act causes major problems, particularly in relation to delays while notice periods expire, in selling and managing ground rent investments. The costs of complying with the Act by having to serve often tens or hundreds of notices on tenants are often disproportionate to the value of the property , and the time which has to elapse before any dealing with the property can be made (four months in the case of an auction) means delay in a property owner realising the value of his asset. The Act was badly drafted by the Law Commisssion and not scrutinised by Parliament, being nodded through before the 1987 election. It contains criminal sanctions if ignored or even if an honest mistake is made as to whether the Act applies or not.
While it was enacted with good intentions the problems it sought to remedy have now been addressed by other legislation.