Leasehold Reform: Where Are We Now?

If you own a flat, or you're thinking about buying one, you've probably heard that leasehold is "being reformed". You may also have noticed it's been "being reformed" for quite a while now.

So where have we actually got to? Here's a plain-English catch-up on what's already changed, what's still on the drawing board, and what it means if you're buying or selling right now. This article covers England.

What's already changed

The Leasehold and Freehold Reform Act 2024 became law back in May 2024. The catch is that most of it still isn't switched on. It needs a lot of secondary legislation before it all comes into force.

Here's what has actually happened so far:

• No more two-year wait. Since 31 January 2025, you can start a lease extension or freehold purchase as soon as you buy, rather than waiting two years. You'll still need your purchase to be registered at the Land Registry first.
• Right to Manage is easier. Since 3 March 2025, more mixed-use buildings qualify (the non-residential limit went up from 25% to 50%), and leaseholders no longer have to pay the freeholder's legal costs when they make a claim.

And here's what's still waiting in the wings:

• Scrapping marriage value, which would make extending a short lease (under 80 years) a lot cheaper
• 990-year lease extensions as standard, with ground rent cut to zero
• Cheaper enfranchisement, with leaseholders generally no longer paying the freeholder's costs

These bigger changes are on hold for three reasons. The government says the 2024 Act has drafting flaws that need fixing through new primary legislation first. It is still deciding the rates used to work out lease extension prices (its consultation closed on 21 October 2026). And a group of large freeholders challenged the reforms in court. They lost in the High Court in October 2025, but the Court of Appeal gave them permission to appeal on 1 April 2026, and no hearing date has been published yet.

We've written a separate piece on why the lease extension rules are still in limbo, including whether to extend now or wait.

What's coming next: the Commonhold and Leasehold Reform Bill

This is where the really big changes sit. A draft of the Bill was published on 27 January 2026 and was examined by MPs on the Housing Committee. The King's Speech in May confirmed the government would bring it forward, and in September the Prime Minister committed to introducing it in this parliamentary session. At the time of writing, the final Bill has not yet been introduced to Parliament.

The main proposals in the draft Bill are:

• A £250 ground rent cap on existing leases, falling to a peppercorn (£0) after 40 years. Most new residential leases granted from 30 June 2022 already have peppercorn ground rents, so this is mainly about older leases.
• A ban on most new leasehold flats. Commonhold would become the default, so you'd own your flat outright and run the building jointly with your neighbours, with no landlord above you.
• An easier route to switch existing leasehold buildings to commonhold
• Abolishing forfeiture, the rule that can, in extreme cases, mean losing your home over a relatively small debt
• A crackdown on "fleecehold" estate charges on new-build freehold estates

One big caveat: none of this is law yet. The details could change as the Bill goes through Parliament, and the timings aren't confirmed. The draft Bill put the ground rent cap in 2028, and the Housing Committee has urged the government to bring it forward to late 2027.

Separately, the government has confirmed changes to make service charges clearer, due from 2027. We cover those in service charges are getting more transparent.

What does this mean if you're buying or selling a flat now?

The short answer is that today's rules still apply to any purchase or sale you're doing right now. A few practical pointers:

• Buying? Check the lease length, the ground rent (and whether it goes up), and the service charges. These matter just as much today as they always have. If the lease is getting short, factor the cost of extending it into your offer. Our guide to freehold vs leasehold covers what to look for.
• Selling? A short lease or an escalating ground rent can still put buyers and lenders off. It's worth asking us early whether extending before you sell makes sense, and getting your management pack ordered early helps avoid delays.
• Thinking of extending your lease? It's tempting to wait in the hope it gets cheaper. If your lease is close to 80 years, though, waiting could cost you more, because marriage value kicks in below 80 years and nobody knows exactly when it will be scrapped. Get advice on your own circumstances before deciding.

The bottom line

Leasehold reform is coming, but slowly, and the biggest changes are still a way off. In the meantime, the best thing you can do is go into any flat purchase or sale with your eyes open.

If you've got questions about a lease, whether that's buying, selling, extending or anything in between, send the team at Bonsai Law a message. Our fees page sets out what we charge, and we act for clients anywhere in England and Wales through online conveyancing.

Sources

• Leasehold and Freehold Reform Act 2024 and SI 2025/57 (two-year rule removed from 31 January 2025)
• MHCLG, Stronger leasehold protections in crackdown on hidden fees (15 July 2026)
• Courts and Tribunals Judiciary, Arc Time Freehold Income Authorised Fund and others v Secretary of State, judgment summary (October 2025)
• HomeOwners Alliance, Leasehold reform latest news 2026 (updated 21 October 2026)

This reflects the position on 3 November 2026. Leasehold law is changing, so take advice on your own lease before you act.