Leasehold reform bill returns: what it means for you

Leasehold reform is back at the top of the government's to-do list. Prime Minister Andy Burnham has confirmed that the Commonhold and Leasehold Reform Bill will be brought before Parliament this autumn, reviving a promise that stretches back to the 2024 King's Speech and looked at risk of slipping again. If it passes, it will be one of the biggest shake-ups to flat ownership in England and Wales in decades.

For the 4.5 million or so leasehold homeowners in England, and anyone thinking about buying a flat, this is worth paying attention to now rather than waiting for it to become law. Here's what's actually in the bill, what's still uncertain, and what it means depending on where you sit.

What's happening

The draft Commonhold and Leasehold Reform Bill was first published in January 2026 and went through pre-legislative scrutiny over the spring and summer. A select committee report followed in May, and since then the bill has been sitting in a kind of legislative limbo while other priorities took up parliamentary time.

That changed when Burnham entered Downing Street and brought Angela Rayner back into the housing brief. Burnham has been explicit that reforming what he calls an "unfair system" is a priority for this parliamentary session, and government sources point to early autumn for the amended bill's introduction. Royal Assent is expected by mid-2027, so this is a multi-year process rather than something that changes overnight.

A related consultation on the valuation rates used to calculate enfranchisement premiums (the cost of extending a lease or buying a freehold) closes on 23rd September, which suggests the government wants that detail settled before the bill formally lands.

What the bill actually changes

Three changes matter most for ordinary homeowners and buyers:

Commonhold as the default: the bill aims to make commonhold ownership the standard for new flats, effectively ending the sale of new leasehold flats. Under commonhold, flat owners jointly own and manage the building through a commonhold association, rather than answering to a separate freeholder.

Ground rent capped: existing leases would have ground rent capped at £250 a year regardless of what the lease says, falling to a peppercorn (effectively zero) after 40 years. This directly targets the escalating ground rent clauses that have caused so much trouble for leaseholders trying to sell or remortgage in recent years, and builds on the ground rent rules many leaseholders are already familiar with.

Cheaper, easier enfranchisement: the bill amends the Leasehold and Freehold Reform Act 2024 to make extending a lease or buying a share of the freehold simpler and less expensive, with a government commitment to have supporting measures in place within two months of Royal Assent.

The bill also proposes abolishing forfeiture (a freeholder's ability to repossess a flat for breaching lease terms, sometimes over surprisingly small debts) and reforming how estate rentcharges are enforced on freehold estates with shared amenities.

What it means if you're buying

If you're looking at a new-build flat, the direction of travel is clear: developers are increasingly likely to offer commonhold rather than leasehold, even ahead of the bill becoming law, as they anticipate where the market is heading. Ask the developer directly about tenure before you commit, and make sure your solicitor checks this as a matter of course during conveyancing.

If you're buying an existing leasehold flat, the ground rent cap should, in time, remove one of the biggest red flags that has spooked buyers and mortgage lenders in recent years. In the meantime, get your solicitor to check the ground rent review clauses in any lease you're considering before you exchange, since the cap isn't law yet.

What it means if you already own a leasehold flat

If your lease has an escalating or onerous ground rent clause, this is genuinely good news, though you'll need patience. Nothing changes until the bill receives Royal Assent, expected around mid-2027, and secondary legislation will likely follow to iron out detail. If you've been putting off extending your lease or buying a share of the freehold because of cost, it may be worth waiting to see how the new enfranchisement rules land, particularly if your lease still has plenty of years left on it. If your lease is getting short (under 80 years), don't wait on legislation that hasn't been passed yet, since the cost of extending rises sharply below that threshold regardless of any reform.

It's also worth remembering that this bill doesn't touch service charges directly. Reasonable, transparent service charges for building maintenance and management will still apply under both leasehold and commonhold, so this reform solves the ground rent problem without addressing every leaseholder complaint.

What it means for landlords

A meaningful share of the private rented sector sits within leasehold flats, so landlords letting out leasehold properties should watch the ground rent cap with interest, since it could improve resale value and reduce running costs over time. If you're weighing up whether to hold, sell, or bring in professional management for a leasehold buy-to-let while this plays out, it's worth getting proper advice on the numbers rather than guessing. Moovehub's fully managed service can take the day-to-day management off your hands while you decide, and our tenant find service is there if you just need help getting a new tenant in.

What happens next

Watch for the bill's formal introduction to Parliament this autumn, most likely September or October, followed by its usual passage through committee stages in the Commons and Lords. Expect amendments and lobbying along the way, particularly from freeholder and managing agent interests, given how much of their business model the ground rent cap would touch. Royal Assent by mid-2027 is the government's stated aim, but leasehold reform has slipped before, so treat that as a target rather than a guarantee.

We covered the earlier draft of this bill in more detail in our leasehold reform explainer, and we'll update as the amended bill takes shape this autumn.

The takeaway

If you own a leasehold flat with an uncapped or escalating ground rent, hold tight rather than panic-selling or rushing an expensive lease extension based on today's rules. If you're buying, ask about tenure and get your solicitor to check the ground rent clause carefully. And if you're a landlord with a leasehold buy-to-let and want a clearer picture of what it's worth or how it's performing, our team can help. If you're thinking about selling a leasehold property, whatever stage the reform reaches, our sell your home service gives you a flat fee and a dedicated local expert to guide you through it.