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.

Right to Manage

The Right to Manage (RTM) was introduced in 2002 giving flat owners a no fault right to collectively take over the management functions in respect of their building.

Leaseholders, acting via an RTM company, can take control of services, repairs, maintenance, improvements, and insurance in respect of their building.

Strengthening Leaseholder Protections over Charges and Services – Consultation Summary

The Government has published an open consultation titled “Strengthening Leaseholder Protections over Charges and Services,” which runs until 26 September 2025. This consultation accompanies the implementation of the Leasehold and Freehold Reform Act 2024 and is part of the wider legislative programme designed to rebalance the leasehold system in favour of flat owners and occupiers.

The consultation targets the next phase of reforms: improving transparency around service charges, regulating managing agents, and reforming major works and reserve funds.

While all of these reforms seem to favour leaseholders, ultimately life may become more expensive, and some flats may be more difficult to sell as a result.