Leasehold reform Bill expected before Christmas

The prime minister has said that the government intends to introduce the Commonhold and Leasehold Reform Bill to Parliament before Christmas 2026.

An earlier draft was published in January 2026 for scrutiny before the Bill’s formal introduction. It included proposals to make commonhold the default tenure for new flats, cap ground rents and replace forfeiture with a new lease enforcement system.

The Housing, Communities and Local Government Select Committee has since examined the draft and made recommendations. The government has considered these recommendations and will introduce the Bill as soon as possible, which will then need to pass through Parliament before it can become law.

On 29 September 2026, the government announced plans to cap certain permission and administration fees charged to leaseholders, and homeowners on privately managed estates.

Fees that could be considered include fees for permission to keep a pet or make minor changes to a property, and charges for providing documents or recording a change in mortgage provider. The government will consult on which fees should be capped and at what level.

The government also announced plans for independent regulation of property agents. Agents would need a licence and appropriate qualifications. A regulator could set standards for conduct and complaints handling, with powers to withdraw licences where standards are not met.

The government has said it will provide further details about their introduction in due course.

Commenting on the announcement, Dr Kion Ahadi, CEO of LEASE, said: “We welcome the government’s proposals to strengthen protections for leaseholders. We have previously supported independent regulation of property managing agents, which could help improve standards of service and accountability. The proposed limits on permission and administration fees will also give leaseholders greater certainty about these costs.”

Work is also continuing to implement the Leasehold and Freehold Reform Act 2024. Its changes to the calculation of lease extension and freehold purchase prices, including the removal of marriage value, are not yet in force.

Before these changes can take effect, the government says it must correct a small number of technical problems in the Act through the forthcoming Bill and set the valuation rates.

The consultation on those rates closes on 21 October 2026. Read our article on the valuation rates consultation and watch our video to understand how they could affect what leaseholders pay and how to respond.

A related consultation on legal and valuation costs closed on 23 September 2026. Both consultations will inform the detailed rules needed to implement the reforms. Until then, the current law continues to apply.