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Commonhold and Leasehold Reform Bill

Lifecycle: Implementation Department for Levelling Up, Housing and Communities · Housing, Communities and Local Government Committee · Ministry of Housing, Communities and Local Government · Regulatory Policy Committee Last regenerated 2 hours ago

Summary

What this is

A reform package announced in the King's Speech 2026 to (i) reinvigorate commonhold as the default tenure for new flats, (ii) make conversion from leasehold to commonhold workable, (iii) cap ground rents on existing leases, and (iv) finish implementing the Leasehold and Freehold Reform Act 2024 through secondary legislation. The draft Commonhold and Leasehold Reform Bill was published on 27 January 2026 for pre-legislative scrutiny by the HCLG Committee.

Why it matters

Approximately 3.8 million leaseholders in England and Wales pay ground rent (≈£600m/year), and 99% of new flats are still sold as leasehold despite commonhold being statutorily available since 2004 with fewer than 20 commonholds created. The Bill therefore touches consumer protection, asset values for freeholders/investors (the LFRA addendum models ≈£4bn transfer over 10 years), retirement housing, and the viability of mixed-use development.

Current status

The draft Bill is undergoing pre-legislative scrutiny by the HCLG Committee (oral evidence sessions 3, 10, 17 and 24 March 2026, concluding with the Minister); the RPC has given the draft impact assessment a green rating (1 May 2026); the King's Speech of 13 May 2026 confirmed the Bill will be introduced this session. Parts of LFRA 2024 continue to be commenced by SI in parallel.

What changed recently

  • 13 May 2026 — King's Speech 2026 confirms a Commonhold and Leasehold Reform Bill will be introduced, including ground-rent capping. →
  • 1 May 2026 — RPC issues a 'green' opinion on the draft Bill's impact assessment. →
  • 29 Apr 2026 — Housing Minister Matthew Pennycook delivers speech committing to 'dismantle' the leasehold system within this Parliament. →
  • 24 Mar 2026 — HCLG Committee concludes pre-legislative oral evidence with the Minister. →
  • 27 Jan 2026 — Government publishes draft Commonhold and Leasehold Reform Bill for pre-legislative scrutiny (WMS HCWS1278). →

Key documents

Framework

Statutory basis

  • Act
    View Original ↗

    Leasehold and Freehold Reform Act 2024 (c.22)

    The parent Act passed in the 2024 wash-up; Parts 1-7 cover the ban on new leasehold houses, enfranchisement/extension reform, the 990-year peppercorn extension right, regulation of service/admin/insurance charges and estate management. Now being commenced piecemeal by SI.

Operationalising

Implementation

Scrutiny

Evidence

Commentary

Review

Other

Consultations

Stakeholders

Grouped by role with evidence. Long groups scroll inside their column.

Sponsoring department 1

  • Ministry of Housing, Communities and Local Government → src
    Lead department; published draft Bill (Jan 2026), White Paper (March 2025) and the LFRA 2024 commencement SIs.

Sponsoring minister 2

  • Matthew Pennycook → src
    Then Minister of State for Housing and Planning (Labour, Commons) when he issued WMS HCWS1278 publishing the draft Bill (27 Jan 2026), WMS HCWS780 on charges (4 July 2025) and the 29 April 2026 'dismantle leasehold' speech. Current portfolio status treated as historical for this build.
  • Baroness Taylor of Stevenage → src
    Then Parliamentary Under-Secretary of State (Labour, Lords) — issued the 21 Nov 2024 Lords WMS setting out the staged LFRA 2024 implementation and the further Bill, and the parallel Lords WMS on charges (HLWS779, 4 July 2025). Current portfolio status treated as historical for this build.

Lead committee 1

  • Housing, Communities and Local Government Committee → src
    Conducting pre-legislative scrutiny of the draft Bill — four oral evidence sessions Feb-March 2026 culminating in Minister's appearance on 24 March 2026.

Regulator / delivery programme 1

  • Regulatory Policy Committee → src
    Issued 'green' opinion on the draft Bill IA (1 May 2026) following receipt of the IA on 25 March 2026.

Witnesses & evidence-givers 7

  • Royal Institution of Chartered Surveyors (RICS) → src
    Submitted written evidence to HCLG Committee (12 March 2026 letter) on the draft Bill.
  • Association of British Insurers → src
    Wrote to the Committee Chair (17 Feb 2026) on the draft Bill — insurance implications of charges reform.
  • Grosvenor Property → src
    Major freeholder; correspondence with Committee Chair (12 and 17 Feb 2026) on draft Bill; previously submitted joint evidence with Cadogan, Church Commissioners and others to the LFRA 2024 PBC.
  • ExtraCare Charitable Trust → src
    Retirement housing provider — letter to Chair (18 March 2026) on the draft Bill, focusing on retirement-leasehold treatment.
  • Richmond Villages → src
    Retirement-village operator — letter to Chair (24 March 2026) on the draft Bill.
  • Angela Rayner → src
    Former Secretary of State for Levelling Up, Housing and Communities (Labour) — gave oral evidence to HCLG Committee on 3 March 2026 alongside Lord Gove on the draft Bill.
  • Lord Gove (Michael Gove) → src
    Former Secretary of State who took LFRA 2024 through Commons; gave oral evidence to HCLG Committee 3 March 2026 on the draft Bill.

Civil society 6

  • National Leasehold Campaign → src
    Campaign group; submitted written evidence (LFRB66) to the LFRA 2024 Public Bill Committee — long-standing position in favour of abolition of leasehold.
  • Home Owners Rights Network (HorNet) → src
    Submitted written evidence (LFRB20 and LFRB33) to LFRA 2024 PBC; leaseholder-side group.
  • Free Leaseholders → src
    Leaseholder advocacy group; submitted written evidence (LFRB40) to LFRA 2024 PBC.
  • Church Commissioners for England → src
    Major historic freeholder; submitted written evidence (LFRB54) to LFRA 2024 PBC.
  • Residential Freehold Association → src
    Trade body representing professional freeholders; submitted evidence (LFRB49) opposing aspects of LFRA 2024 valuation changes.
  • Law Commission (Professor Nick Hopkins) → src
    Commissioner for Property, Family and Trust Law — author of the 2020 commonhold and enfranchisement reports underpinning both LFRA 2024 and the draft Bill; submitted written evidence to PBC.

Commentator 5

  • Justin Madders ↗
    Labour, Commons — previously sponsored a Leasehold Reform Bill; long-standing parliamentary advocate for leasehold reform.
  • Mr Philip Hollobone ↗
    Conservative, Commons — sponsored the Leasehold Reform (Amendment) Act; backbench leasehold-reform sponsor.
  • Lord Greenhalgh ↗
    Conservative peer — sponsored the Leasehold Reform (Ground Rent) Act 2022 as MHCLG minister; relevant for continuity on ground-rent capping.
  • Baroness Scott of Bybrook → src
    Conservative peer — took LFRA 2024 through the Lords as DLUHC minister; correspondence on commencement of measures.
  • Baroness Williams of Trafford ↗
    Sponsor of the Leasehold Reform (Amendment) Act in the Lords.

Political commitments

What parties and ministers have promised — manifesto pledges, King's Speech announcements, ministerial statements. Each card shows what was said, by whom, and when, with a link to the original source.

  • commitment King's Speech announcement Labour · 2026 · King's Speech announces Commonhold and Leasehold Reform Bill

    Commonhold and Leasehold Reform Bill

    My Ministers will bring forward legislation … to reform the leasehold system, including the capping of ground rents [Commonhold and Leasehold Reform Bill].

    Why linked: Confirms the Bill in the 2026 legislative programme — operative political commitment behind this thread.

    Source: King's Speech announces Commonhold and Leasehold Reform Bill · Original ↗
  • commitment Ministerial statement Labour · 2026 · Housing Minister speech on Leasehold and Commonhold Reform

    Government will 'dismantle' leasehold this Parliament

    The aim of this government, by the end of this Parliament, is nothing short of its dismantling and the corresponding emancipation of leaseholders.

    Why linked: Pennycook's 29 April 2026 speech — sets the political ambition the Bill must deliver against.

    Source: Housing Minister speech on Leasehold and Commonhold Reform · Original ↗
  • commitment Ministerial statement Labour · 2024 · Statement by the Minister of State for Housing and Planning

    Manifesto commitment to act on leasehold

    As a government, we made a clear and unambiguous commitment in our manifesto to act where previous governments had failed…

    Why linked: Pennycook's 27 January 2026 WMS HCWS1278 frames the draft Bill as delivering the 2024 manifesto.

    Source: Statement by the Minister of State for Housing and Planning · Original ↗

Open questions & gaps

Known gaps in the evidence base and what's still pending.

Pending in the lifecycle

  • HCLG Committee pre-legislative scrutiny report — to be issued after the 24 March 2026 Minister session and before the Bill's introduction.
  • Government response to the 'Strengthening leaseholder protections over charges and services' consultation (closed 4 July 2025) — flagged in PQ 129324 as outstanding.
  • Government response to the 'Enhanced protections for homeowners on freehold estates' consultation (closed 18 December 2025).
  • Government response and policy decision on the existing-leases ground rent cap consultation (originally 2023) — five options remain open; the Bill is expected to crystallise the chosen design.
  • Secondary legislation to commence LFRA 2024 valuation provisions (Schedules 4-6) and to set the prescribed rates for enfranchisement premiums.
  • Replacement of forfeiture — whether the Bill will include the abolition of forfeiture as a remedy (raised in HL16161 and Lords Committee debate 24 April 2024).
  • Treatment of retirement-village leases under both the ban on new leasehold houses and ground-rent capping (raised by Richmond Villages, ExtraCare, ARCO).

Beyond the corpus

  • MISSING Bill text in Parliament's catalogue — not yet introduced as of King's Speech 13 May 2026. — Draft published 27 Jan 2026 for PLS; introduction expected after Committee reports.
  • MISSING Published government response to the 2023 'Modern leasehold: restricting ground rent' consultation. — Consultation closed in early 2024; response repeatedly promised but not yet released as of corpus cut-off.

Confidence gaps

  • Final choice of ground-rent cap design (peppercorn vs absolute £ cap vs % of value vs freeze vs time-limited) is not in the corpus — the Bill could land on any of the five IA options.
  • Scope of compulsory commonhold for new flats vs continued availability of leasehold remains a design choice not yet announced.
  • Whether the Bill will repeal forfeiture or merely limit it is not confirmed.