Landlords Beware

Landlords beware; commercial leaseholders may get round restrictions in their lease to achieve residential use which brings the potential right to forcibly acquire the freehold (enfranchisement).

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 English Devolution and Community Empowerment Act 2026

The English Devolution and Community Empowerment Act 2026 (“Act”) received Royal Assent on 29 April 2026. Among its most significant commercial property reforms is the proposed prohibition on upwards-only rent reviews (“UORRs”) in business leases.

Although the relevant provisions are not yet in force, the direction of travel is now clear.

The legislation represents a substantial shift in business tenancies practice and may rapidly begin to influence negotiations, valuation assumptions and asset management decisions.

One immediate consequence is that landlords with pending rent reviews under existing leases are likely to rush their conclusion before the ban crystallises.