Commonhold and Leasehold Reform Bill 2026: What Every Leaseholder Needs to Know Right Now

Published: May 2026

The 2026 King's Speech, delivered on 13 May 2026, confirmed what millions of flat owners in England have been waiting years to hear: the Government will bring forward the Commonhold and Leasehold Reform Bill 2026, the most ambitious overhaul of flat ownership law in a generation. With a draft Bill already published on 27 January 2026, the direction of travel is clear — leasehold is on its way out, and commonhold is coming in.

For the estimated millions of leaseholders across England living with ground rents, forfeiture threats, and opaque service charges, this legislation represents a genuine turning point. But the road ahead is not without complexity, and the timeline for key reforms may stretch well beyond this Parliament.

Key Takeaways 🏠

• The 2026 King's Speech (13 May 2026) formally confirmed the Commonhold and Leasehold Reform Bill will be brought forward.
• A draft Bill was published on 27 January 2026, setting out the Government's proposed reforms.
• Commonhold will become the default tenure for new flats, with most new leasehold flats banned.
• Ground rents for existing leaseholders in England will be capped at £250 per year.
• The forfeiture regime — widely considered one of the most punitive aspects of leasehold — will be abolished.
• Key reforms, including the ban on new leasehold flats, may not come into force until around late 2028, and some may not be activated during this Parliament.

Table of Contents

1. What Is the Commonhold and Leasehold Reform Bill 2026?
2. Key Reforms Explained
3. Ground Rent Cap: What It Means for You
4. Abolishing Forfeiture: A Major Win for Leaseholders
5. Converting to Commonhold: How Will It Work?
6. Timeline: When Will the Reforms Take Effect?
7. What the Commonhold and Leasehold Reform Bill 2026 Means for Buyers
8. FAQ
9. Conclusion

What Is the Commonhold and Leasehold Reform Bill 2026? {#what-is-it}

The Commonhold and Leasehold Reform Bill 2026 is a proposed piece of legislation designed to fundamentally reshape how flats and apartments are owned in England. Under the current leasehold system, flat owners do not own their property outright — they hold a time-limited lease from a freeholder, often paying ground rent and service charges with limited control over their building.

Commonhold is the alternative. Under commonhold, each flat owner holds their unit outright and jointly owns and manages the shared parts of the building through a commonhold association. It is the standard model across much of Europe and the United States, yet it has barely taken hold in England since it was first introduced in 2002.

The draft Bill, published on 27 January 2026, outlines how the Government intends to change this — making commonhold the default for new developments and giving existing leaseholders a clearer route to convert.

Key Reforms Explained {#key-reforms}

The Commonhold and Leasehold Reform Bill 2026 contains several headline proposals. Here is a clear breakdown:

Reform	Detail
🚫 Ban on new leasehold flats	Most new flats will no longer be sold as leasehold
🏢 Commonhold as default	New flats will default to commonhold tenure
💷 Ground rent cap	Existing ground rents capped at £250/year in England
⚖️ Abolish forfeiture	The forfeiture regime will be scrapped
🔄 Easier conversion	Existing leaseholders will find it easier to switch to commonhold
📡 Broadband right	New right to request a faster broadband connection

Each of these reforms addresses a long-standing grievance within the leasehold system, and taken together, they represent a significant shift in the balance of power between leaseholders and freeholders.

Ground Rent Cap: What It Means for You {#ground-rent-cap}

One of the most immediately practical reforms is the proposed cap on ground rents at £250 per year for existing leaseholders in England. Currently, some leaseholders pay ground rents that double every ten years or are linked to inflation, creating significant financial pressure and making properties difficult to mortgage or sell.

"A ground rent cap of £250 per year would provide immediate financial relief for thousands of leaseholders trapped in escalating ground rent arrangements."

This cap would not apply to new flats, which — once the ban on new leasehold flats is activated — will not have ground rents at all. The cap is specifically targeted at protecting those already locked into existing leasehold agreements.

Abolishing Forfeiture: A Major Win for Leaseholders {#forfeiture}

The forfeiture regime is arguably the most controversial aspect of leasehold law. Under current rules, a freeholder can — in theory — seize a leaseholder's home for relatively minor breaches of their lease, including unpaid service charges. Even where forfeiture is rarely exercised, the threat alone gives freeholders disproportionate power.

The Commonhold and Leasehold Reform Bill 2026 proposes to abolish forfeiture entirely, replacing it with a system of stronger leaseholder protections. This would remove what many housing campaigners describe as a fundamentally unjust mechanism, and bring England's leasehold law in line with more modern property rights frameworks.

Converting to Commonhold: How Will It Work? {#converting}

For the millions of existing leaseholders in England, the ability to convert to commonhold is one of the most eagerly anticipated aspects of the Bill. The draft legislation proposes to make this process significantly easier than it currently is.

Under the existing rules, converting to commonhold requires the unanimous agreement of all leaseholders in a building — a near-impossible threshold in practice. The new proposals are expected to lower this bar, though the precise mechanism will be set out in the final legislation.

Key points to note:

• Conversion will require collective action by leaseholders in a building.
• The process is designed to be more accessible and affordable than the current route.
• Leaseholders will need to form or join a commonhold association to manage their building collectively.

Timeline: When Will the Reforms Take Effect? {#timeline}

This is where leaseholders should temper their expectations. Housing Minister Matthew Pennycook has indicated that the ban on new leasehold flats may not be 'switched on' during this Parliament. The reforms are currently expected to come into force around late 2028, though this timeline may change as the Bill progresses through Parliament.

⏳ Estimated timeline at a glance:

• 27 January 2026 — Draft Bill published
• 13 May 2026 — King's Speech confirms the Bill will be brought forward
• 2026–2027 — Parliamentary scrutiny and passage expected
• Around late 2028 — Reforms potentially come into force (subject to change)

This means prospective buyers and existing leaseholders should not expect overnight change. The leasehold system will remain in place for new developments until the ban is formally activated.

What the Commonhold and Leasehold Reform Bill 2026 Means for Buyers {#buyers}

For anyone considering purchasing a flat in England right now, the Commonhold and Leasehold Reform Bill 2026 raises important questions:

• Should you buy leasehold now? New leasehold flats will continue to be sold until the ban is activated. Buyers should scrutinise ground rent terms, lease length, and service charge arrangements carefully.
• Is commonhold available yet? Commonhold exists as an option today but remains rare. The Bill aims to change this significantly once enacted.
• What about resale value? Properties with high or escalating ground rents may become harder to sell or mortgage. The proposed cap should improve this picture for existing owners.

Tip for buyers: Always instruct a solicitor experienced in leasehold law, and check the ground rent terms and lease length before exchanging contracts.

FAQ {#faq}

❓ What is commonhold and how does it differ from leasehold?
Commonhold gives flat owners outright ownership of their individual unit, with shared ownership and management of communal areas through a commonhold association. Leasehold, by contrast, is a time-limited interest in a property owned by a freeholder.

❓ When will the ban on new leasehold flats come into effect?
Housing Minister Matthew Pennycook has indicated the ban may not be activated during this Parliament. Reforms are currently expected around late 2028, but this is subject to change as the Bill progresses.

❓ Will my ground rent be automatically capped at £250?
The Bill proposes to cap ground rents at £250 per year for existing leaseholders in England, but this will only take effect once the legislation is passed and the relevant provisions are brought into force.

❓ Can I convert my leasehold flat to commonhold now?
Conversion to commonhold is technically possible under existing law but is rarely used due to the requirement for unanimous leaseholder agreement. The new Bill proposes to make conversion significantly easier, though the details will be confirmed in the final legislation.

❓ Does the Bill apply in Scotland and Wales?
Property law is devolved. The Commonhold and Leasehold Reform Bill 2026 applies to England. Scotland has its own system of flat ownership (the tenement system), and Wales may legislate separately.

❓ What is the new broadband right in the Bill?
The Bill includes a new right for leaseholders to request a faster broadband connection to their property. This addresses situations where freeholders have historically been able to block or delay broadband upgrades.

Conclusion {#conclusion}

The Commonhold and Leasehold Reform Bill 2026 marks a watershed moment for flat ownership in England. Confirmed in the 2026 King's Speech and underpinned by a draft Bill published in January 2026, the legislation sets out a clear ambition: to end the leasehold system as the default for new flats, cap punishing ground rents, abolish the threat of forfeiture, and give leaseholders genuine control over their homes.

The caveat is timing. With key provisions — including the ban on new leasehold flats — potentially not activated during this Parliament, and reforms broadly expected around late 2028 at the earliest, patience will be required.

Actionable next steps for leaseholders and buyers:

1. ✅ Review your lease — check your ground rent terms, lease length, and any doubling clauses now.
2. ✅ Talk to a specialist solicitor — get advice on how the proposed reforms may affect your specific situation.
3. ✅ Monitor the Bill's progress — follow parliamentary updates as the legislation moves through its stages.
4. ✅ Connect with your neighbours — collective action will be key to any future conversion to commonhold.
5. ✅ If buying, ensure your conveyancer carries out thorough due diligence on any leasehold property until the new regime is fully in force.

The direction of travel is unmistakable. For England's leaseholders, change is coming — and the Commonhold and Leasehold Reform Bill 2026 is the most significant step towards it in decades.