By Tracey Taylor

Associate Solicitor

15 September 2026

Article Blog

The 2024 Labour Party Manifesto stated that it would “bring the feudal leasehold system to an end”.

The King’s Speech earlier this year announced that the Government would bring forward a Commonhold and Leasehold Reform Bill in the 2026/2027 Parliamentary Session.

At the current time the Bill, which only applies to England and Wales, would, amongst other things:

• Create a new legal framework for Commonhold, which was initially introduced through the Commonhold and Leasehold Reform Act 2002 to enable the freehold ownership of flats and avoid some of the pitfalls of leasehold ownership. However, it has failed to be used as a widespread form of homeownership.
• Ban the use of leasehold for most new flats to make commonhold the default tenure. The government has consulted on its proposals, including the scope and timing of the ban and any exemptions. The consultation closed on 24 April 2026 and the government is analysing the feedback.
• Cap ground rents at £250 a year, and then subsequently falling to a peppercorn (ie non-payable) after 40 years.  The cap is likely to come into force in late 2028 but is subject to the approval of Parliament.
• Abolish the threat of forfeiture (ie possession), with a view of replacing it with a fairer and more proportionate lease enforcement scheme.  More detail has yet to be provided. 

A draft version of the Commonhold and Leasehold Reform Bill, which was published on 27 January 2026, has been subject to pre-legislative scrutiny by the Housing, Communities and Local Government Select Committee. 

The Committee’s report, published on 27 May 2026, found that the draft Bill is a significant step towards giving leaseholders greater control of their buildings.  In particular, the Committee recommended that the Government should:

• introduce the final Bill in autumn 2026.
• commence the £250 ground rent cap in late 2027 and consider whether ground rents should fall to a peppercorn within a shorter transitional period, such as 20 years.
• create an independent regulator for property management agents, with powers to sanction rogue agents.
• make technical changes to the bill to ensure commonhold works as intended, including by making conversion to commonhold the default outcome of a collective enfranchisement.
• enact the remaining Law Commission recommendations on leasehold enfranchisement and the right to manage.

The Government will consider the Committee’s report before introducing the final version of the Bill to Parliament. 

At the present time it is anticipated that the Bill is introduced to Parliament in Autumn 2026, with the Government aiming for Royal Assent by mid-2027. However, it is difficult to say with any certainly, for a number of factors, which of the proposed changes will be implemented or when or in what format.  It’s a case of wait and see what happens!   

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