Leasehold reforms explained
Draft Commonhold and Leasehold Reform Bill
The government has published a Draft Commonhold and Leasehold Reform Bill as part of its programme to make leasehold fairer and to expand commonhold (the system where homeowners fully own and manage their building) in England and Wales.
These proposals are not yet law.
The draft legislation includes:
- capping ground rents at £250 a year before changing to a “peppercorn rent” (effectively zero) after 40 years
- a comprehensive new legal framework for commonhold
- banning the use of leasehold for most new flats, so that in future they will be commonhold
- making it easier for leaseholders to convert their homes to commonhold
- abolishing the existing forfeiture regime, and replacing it with a fairer and more proportionate lease enforcement regime
- repealing similar enforcement powers that apply to estate rent charges on privately managed freehold estates
Timeframe: what we know
The proposals in the draft bill have been considered by the Housing, Communities and Local Government select committee. The committee published its report in May 2026 which the government will now consider.
The plans for the bill were confirmed in the King’s Speech on 13 May 2026.
A final bill will be presented to Parliament in due course which will need to be passed by both Houses (Commons and Lords) before it passes into law. Once the bill has Royal Assent, its measures may be brought into force at different times.
The government has indicated that (subject to parliamentary approval):
- the £250 a year ground rent cap could be introduced in 2028
- the new commonhold model could be available in 2029
- forfeiture reforms would be introduced as soon as possible after Royal Assent
Find out more
- Last updated:
- 29 May 2026
- Next review:
- 24 November 2026