Draft Commonhold and Leasehold Reform Bill

The government has published a draft Bill which, when implemented, will deliver its manifestoits manifesto and King’s Speech commitments to reinvigorateto reinvigorate and reform the commonhold model, making it easier for existing leaseholders to convert to commonhold should they wish to do so, and banning thebanning the use of leasehold forleasehold for most new flats.new flats.

The Bill willThe also supportBill will also support existing leaseholders by cappingleaseholders by capping ground rents at £250 a year, changing to a peppercorn after 40 years, and by abolishing theabolishing draconian threatthe draconian threat of forfeiture. In place of forfeiture, the Bill will introduce a new, fairer andfairer and more proportionate leaseproportionate lease enforcement scheme benefitting bothscheme benefitting both leaseholders and landlords. In addition, the Bill will tackle similarly harsh enforcement powers that apply to estate rentcharges on freehold estates by repealing those powers as they relate to estate rentcharges.

Taken together, these reforms will significantly improve the currentthe current system for thefor fivethe million existing5 leasehold propertiesmillion existing leasehold properties and their owners, while ensuring a better deal for future generations of homeowners in England and Wales. TheWales. Bill will give homeownersThe much greaterBill will give homeowners much greater security and control over their homes throughhomes through access to fitto fit for purpose and modern commonholdmodern commonhold ownership.

The documents include:

• Ground rent policy statement
• Draft Commonhold and Leasehold Reform Bill command paper
• Delegated Powers Memorandum
• Guide to the Bill
• Moving to Commonhold: consultation on banning leasehold for new flats

The Housing, Communities and Local Government Select Committee launched their pre legislative scrutiny of the draft Commonhold and Leasehold Reform Bill on 4 February 2026.