Leasehold Reform Latest News 2026
Leasehold reform has long been a significant issue in the UK leasehold sectors of England and Wales, affecting millions of homeowners who, despite purchasing their properties, remain subject to ongoing fees and restrictions imposed by freeholders. Under the traditional leasehold system, leaseholders often face rising ground rents, expensive service charges, and limited control over their homes—issues that can lead to financial pressure and legal uncertainty. Reform has therefore been widely recognised as essential to creating a fairer, more transparent and equitable housing system.
Momentum around reform has accelerated recently, with the phased implementation of the Leasehold and Freehold Reform Act 2024. One of the first changes to come into force, on 31 January 2025, is the removal of the two-year ownership requirement, enabling leaseholders of flats to begin the process of extending their lease or pursuing enfranchisement rights immediately upon purchase. On 3 March 2025, right to manage provisions kicked in – making it easier for leaseholders to manage the buildings that contain their flats. This includes relaxing the eligibility criteria and removing the requirement to cover the freeholder’s legal costs when submitting a claim.
In parallel, attention is turning to the Commonhold Reform proposals, part of the government’s broader overhaul of leasehold law. A government white paper and consultation materials have, in recent years, set out proposals to replace leasehold ownership with a commonhold system for new flats. Under this model, individual flat owners would hold the freehold of their unit and jointly own and manage the common areas of the building. Crucially, proposals also include measures aimed at making it easier for existing leaseholders to convert to commonhold—signalling a potential long-term shift in how property ownership is structured in England and Wales.
The leasehold landscape in England and Wales is undergoing some of the most significant reforms in decades. With new laws, pending regulations, and further reforms on the horizon—including the move towards commonhold—it can be difficult for leaseholders to keep track of what applies now and what changes are still to come. The complexity and pace of these developments make clear, up-to-date advice more important than ever.
At Starck Uberoi, we are committed to keeping our clients informed and protected as the legal framework evolves. On this page we provide Leasehold Reform Latest News which will be updated as developments occur in relation to Leasehold Reform and the Commonhold Reform Bill.
Background: Understanding Leasehold in the UK
In the UK, property can be owned on either a freehold or leasehold basis. Freehold ownership means owning both the property and the land it stands on outright. Leasehold, by contrast, involves owning a property for a set period of time, under a lease agreement with the freeholder (also known as the landlord), who retains ownership of the land and the building’s structure.
Leasehold is most commonly associated with flats, where multiple units exist within a single building. While leaseholders are responsible for maintaining the interior of their property, the freeholder typically manages the building’s structure, common areas, and grounds—often through a managing agent. In return, leaseholders must pay ground rent, service charges, and sometimes administration fees, which can increase over time.
Lease terms can vary widely—ranging from a few decades to several centuries—but once a lease drops below around 80 years, the property’s value can decline, and extending the lease becomes more expensive due to what is known as ‘marriage value’ (expected to be abolished under reform). Importantly, because leaseholders do not own the property indefinitely, they have limited control over its management and may face restrictions on alterations, subletting, or other uses.
This structure has been criticised for creating an imbalance of power between leaseholders and freeholders, leading to growing calls for reform to make the system more equitable and sustainable.
Leasehold Reform Latest Updates
2026 – Status Check:
February 2026 – Key reforms still pending. Many headline measures (including 990-year statutory lease extensions and abolition of marriage value) remain subject to commencement and further regulations.
2025 – Commonhold White Paper Published:
31 January 2025 – Two-year ownership rule removed. Regulations brought into force provisions removing the requirement for leaseholders to have owned a lease for two years before serving a statutory lease extension or enfranchisement notice.
In March 2025, the government published a white paper on Commonhold Reform, outlining proposals to revive and promote commonhold as a long-term replacement for leasehold in new developments and existing buildings.
31 January 2025 – Two-year ownership rule removed. Regulations brought into force provisions removing the requirement for leaseholders to have owned a lease for two years before serving a statutory lease extension or enfranchisement notice.
2024 – Leasehold and Freehold Reform Act Passed
24 July 2024 – First LFRA 2024 provisions commenced. Early sections came into force, including changes affecting rent charge remedies and certain service charge/building safety-related provisions.
31 October 2024 – Further building safety-related amendments commenced. Additional LFRA 2024 provisions linked to the Building Safety Act 2022 came into force
The Leasehold and Freehold Reform Act 2024 received Royal Assent, introducing sweeping changes including the extension of standard lease terms to 990 years, removal of marriage value, and a ban on the sale of most new leasehold houses. Although many of these changes are yet to be implemented, the process has begun.
2023 – Leasehold and Freehold Reform Bill Announced
The government announced a broader Leasehold and Freehold Reform Bill to implement the Law Commission’s recommendations. The Bill aimed to improve enfranchisement rights, simplify lease extensions, and enhance transparency in service charges.
2021 – Ground Rent Act Introduced
The Leasehold Reform (Ground Rent) Act 2022 was introduced, banning ground rents on most new residential leases in England and Wales. It came into force on 30 June 2022 for new leases, marking the first major legislative step toward reform.
2020 – Law Commission Reports
The Law Commission published a trio of landmark reports on enfranchisement, the right to manage, and commonhold. These reports recommended significant changes to make leasehold ownership fairer, more affordable, and more transparent. The government welcomed the reports and promised to act on the recommendations.
2018 – Further Consultations and Commitments
Building on its 2017 pledge, the government conducted further consultations on setting ground rents at zero for new leases, simplifying the lease extension and enfranchisement process, and promoting commonhold as an alternative form of ownership.
2017 – Initial Government Pledge
Leasehold reform became a national issue when the government pledged to ban the sale of new leasehold houses and address onerous ground rents, following revelations that many homeowners were trapped in leases with rapidly escalating charges. A consultation was launched to gather views on ending exploitative practices.
About Starck Uberoi Solicitors
At Starck Uberoi Solicitors, we are specialist leasehold solicitors and accredited members of ALEP. We offer a full range of leasehold advice services including leasehold conveyancing, lease extensions (you may want to try our lease extension calculator), collective enfranchisement and leasehold enfranchisement.
Our Offices
Although we offer a completely remote service via telephone and online tools clients are always welcome to visit our offices.
Our solicitors in the Brentford area also serve Chiswick and Hounslow. Our solicitors in the Ealing area cover Acton and Northfields, our solicitors in the Belgravia area cover Victoria and Westminster, our solicitors in the Pinner area cover Harrow, Northwood and Ruislip, our solicitors in the Richmond area cover Twickenham and Kew, and our solicitors in the Canterbury area cover east Kent.
Our partner, Raminder Uberoi, can also offer a Notary Public Service at any of our London offices.
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