Posted Friday 30th January 2026
The government has published further details of its plans to reform the leasehold system in England and Wales, aimed at reducing costs for homeowners and changing how flats are owned and managed.
The draft Leasehold and Commonhold Reform Bill proposes capping ground rent for existing leaseholders at £250 a year, before reducing it to a peppercorn rate, essentially zero, after 40 years. The cap could take effect in late 2028, subject to parliamentary approval.
The bill would also restrict the sale of new leasehold flats, allowing leasehold only in limited cases, with new flats instead sold as commonhold, where residents jointly own their building and the land it stands on.
Additional measures include stronger rights for leaseholders over service charges and the abolition of forfeiture, replacing it with a court-led process with safeguards.
The legislation will now be examined by MPs, while a consultation on commonhold remains open until 24 April.
For more information, or to arrange a free call, please contact Charlotte White or Jessica Slater in our Real Estate team.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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