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Government consults on banning new leasehold flats, ground rent cap, and transition to commonhold

Government consults on banning new leasehold flats, ground rent cap, and transition to commonhold

The Government has now opened a consultation in this regard titled “Moving to commonhold: banning leasehold for new flats”.

The consultation forms part of the next phase of leasehold reform and sits alongside the ongoing implementation of the Leasehold and Freehold Reform Act 2024 (‘The 2024 Act’) and the recently published draft Commonhold and Leasehold Reform Bill (‘The Bill’).

This seeks opinions from leaseholders, landlords and managing agents about how the Bill’s proposed ban on new residential leaseholds should be implemented in practice.

The Draft Commonhold and Leasehold Reform Bill

The Draft Commonhold and Leasehold Reform Bill

The government announced the introduction of the draft Commonhold and Leasehold Reform Bill in January 2026. This Bill proposes several reforms to the current flat ownership system, including:

· A ban on new flats being sold as leaseholds – they would need to be sold as commonhold properties, which the Government is pushing to become the default form of flat ownership; and

· A cap on ground rents at no more than £250 pa, which will be reduced to a peppercorn after a 40-year transitional period has passed.

The Housing, Communities and Local Government (‘HCLG’) Committee has now launched a short public inquiry into the Government’s draft Commonhold and Leasehold Reform Bill (‘the Bill’), which was published for pre-legislative scrutiny on 27 January 2026.

Draft Commonhold and Leasehold Reform Bill

Draft Commonhold and Leasehold Reform Bill

In January 2026 the Government published the Draft Commonhold and Leasehold Reform Bill, confirming its intention to cap ground rents in existing residential leases at £250 per annum, with a longer-term objective of reducing those rents to a peppercorn. Another proposal by the Bill is to ban the creation of new leaseholds and instead to make commonhold the default mode of flat ownership.

The Bill has been published in draft form only and is subject to pre-legislative scrutiny, consultation and amendment. It is important for leaseholders, landlords and managing agents to understand the effects of the proposals and the likely timescale for their implementation.

Government Publishes Roadmap for Implementing the Renters’ Rights Act 2025

Government Publishes Roadmap for Implementing the Renters’ Rights Act 2025

The Ministry of Housing, Communities and Local Government (MHCLG) has now published its much-anticipated roadmap for implementation of the Renters’ Rights Act 2025 (‘The Act’), confirming how – and when – the biggest reform of residential tenancy law in a generation will take effect.

The changes – such as the abolition of section 21 no-fault evictions and assured shorthold tenancies (ASTs) – will be introduced in phases starting in May next year, with significant practical consequences for residential landlords and tenants, managing agents, and investors alike. This article outlines the key changes and implementation dates below.

Varying residential flat leases

Varying residential flat leases

Flat leases often contain defects which one party or the other would like to see changed. This can be a particular problem on resale as lenders continue to tighten their requirements over time.

Such a change would usually be documented by varying the lease via a Deed known as a “Variation”.

Recent case law developments have made lease variations easier in certain circumstances and serve as a useful reminder of the available routes for seeking a variation.

High Court Dismisses Freeholders’ Challenge

High Court Dismisses Freeholders’ Challenge Leasehold and Freehold Reform Act 2024 Upheld

The High Court has now issued its much-anticipated judgment in Arc Time Freehold Income Authorised Fund and others -v- Secretary of State for Housing, Communities and Local Government [2025] EWHC 2751 (Admin), firmly rejecting the judicial review brought by several of London’s largest landed estates.

The Renters’ Rights Bill Becomes Law

The Renters’ Rights Bill Becomes Law

Earlier this week, the long‐awaited Renters’ Rights Bill cleared the ‘ping-pong’ stage between the Commons and Lords to receive Royal Assent and become law. For tenants, landlords and property professionals alike, this marks a major overhaul for the residential rental market.

Conservative Party Pledges to Abolish SDLT

Conservative Party Pledges to Abolish SDLT What Would This Mean for the Market?

Conservative leader Kemi Badenoch announced at the Conservative Party Conference 2025 yesterday that the next Tory Government to be elected will completely abolish stamp duty land tax (SDLT) paid by buyers on primary residences in England.

Home Buying and Selling Reforms

Home Buying and Selling Reforms Government Launches Landmark Consultation on Home Buying and Selling Reform

On 6 October 2025, the Ministry of Housing, Communities and Local Government (MHCLG) launched a consultation on reforming the home buying and selling process in England and Wales. The consultation seeks public opinions on a series of proposals intended to create a more transparent and efficient residential property market.

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