Peppercorn rent

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For peppercorns, see black pepper

A peppercorn rent in England can refer to a nominal rental sum for property, land or buildings. Where a rental contract is put in place and the owner of the property wishes it to be rent free it is normal to charge, say, one pound sterling as a peppercorn rent. This is because, if the owner wants to lease the property, they must charge some rent so that consideration exists for both parties.

The term comes from the Middle Ages, when black pepper carried a high price in Europe, it was sometimes used in place of money or as a dowry.

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