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.

Leasehold Reform

The Leasehold and Freehold Reform Act 2024

The Leasehold and Freehold Reform Act 2024 (LaFRA) represents a significant shift in property ownership laws in England and Wales, aiming to enhance the rights of residential leaseholders, this being flat and house owners.

While it received Royal Assent on 24^th May 2024 only a few provisions were brought into effect then, and it wasn’t until the end of January that the first change relating to enfranchisement rights came into effect. This was the removal of the requirement to have owned your flat or house for two years before you could claim an extended lease or the freehold to your house.

Now a number of provisions of the LaFRA relating to the Right to Manage (RTM) have been brought

Our costs and service information – Residential Conveyancing

Ashley Wilson’s residential conveyancing team combines years of experience and specialist lease extension and enfranchisement expertise to be able to provide you with all the legal support you need, e.g. buying, selling, mortgaging and extending a lease.