Leasehold Reform in England: What to Watch in 2026

Leasehold law in England has been in flux for several years, and the pace has not slowed. For buyers and leaseholders, the practical question is simple: which rules apply to me today, and which are still on the way? This article looks at the main themes of leasehold reform 2026 and what to keep an eye on.

A caution first. Reform often involves an Act of Parliament followed by regulations, commencement dates and guidance, and the position can change from month to month. We therefore describe themes and directions rather than giving a definitive timetable, and we have marked the points that need checking against official sources at the time you read this. This is general information, not legal advice.

Where Things Stand: A Short Recap

• Ground rent on new leases. The Leasehold Reform (Ground Rent) Act 2022 limited ground rent to a peppercorn on most new long residential leases in England and Wales granted from 30 June 2022.
• Building safety. The Building Safety Act 2022 introduced protections for some leaseholders against certain costs of historic building safety defects, alongside new regimes for building safety management.
• The Leasehold and Freehold Reform Act 2024. This Act received Royal Assent in 2024 and contains a range of measures on lease extensions, freehold purchase, service charge transparency, and other matters. Many of its provisions require secondary legislation to take effect.

Theme 1: Easier and Cheaper Lease Extensions and Freehold Purchase

The 2024 Act aims to make it easier to extend a lease or buy the freehold. Headline changes include:

• Removing the requirement to have owned a lease for two years before using the statutory right
• Setting a longer standard extension term for flats, with ground rent reduced to zero
• Changing how the price is calculated, including measures on marriage value and the treatment of ground rent
• Reducing the share of non-residential space that can disqualify a building from collective enfranchisement
• Changing the rules on costs, so that leaseholders are not always liable for the landlord’s legal fees

What matters in 2026 is which of these have been brought into force, and what the valuation rates and regulations say. Prices in practice depend on the government’s prescribed rates, which at the time of writing may not be final. Someone planning an extension should take specialist advice on timing before serving a notice. Our overview explains how extensions work.

How Lease Extensions Work: An Overview

Theme 2: Ground Rents on Existing Leases

New leases have a peppercorn ground rent, but millions of existing leases still carry ground rent. The government has said it wants to address it, and options discussed have included capping ground rents at a low level and reducing them over time. Details, timing and whether any compensation would be paid to landlords are matters to watch for in 2026.

In the meantime, follow the terms of your lease and keep paying valid ground rent demands unless advised otherwise. Our ground rent guide explains how it works.

How Ground Rent Works and What to Look For

Theme 3: Commonhold as a Real Alternative

Commonhold has existed since 2004 but has been rarely used. Reform plans have focused on reviving it, so that new flats and, in some cases, existing leasehold blocks can use it. Elements discussed include a stronger legal framework, easier conversion from leasehold and clearer governance rules.

What to watch for:

• New legislation or regulations setting out the commonhold framework
• Lender and insurer attitudes, which will decide how practical it is
• How the transition of existing leasehold properties would work
• What happens to ground rent and existing leases when blocks convert

Theme 4: Transparency and Service Charges

Provisions aim to improve how information on service charges, insurance commissions and fees is provided. They include requirements for clearer demands and the ability to obtain information more easily. Measures on buildings insurance have included greater transparency about commissions and potential limits.

For leaseholders, the practical impact will depend on regulations. When rules come into force, expect changes to how demands are formatted, how long you have to request information and what landlords must disclose when you sell. Our service charge guide describes the current protections.

How Service Charges Work for Leaseholders

Theme 5: Redress, Regulation of Managing Agents and Better Standards

There has long been discussion about regulating managing agents and requiring professional standards. Proposals have included qualifications, a regulatory regime, and a requirement to belong to a redress scheme. Whether these are implemented in 2026, and how, is something to track.

Theme 6: Right to Manage, Management Disputes and Costs

Reform also touches the Right to Manage and tribunal procedures, including the rules on costs. Changes are intended to make it easier for leaseholders to take over management, but eligibility conditions and procedures will be set out in detail in regulations. Leaseholders in a poorly managed building should watch for the date these changes begin.

Theme 7: Building Safety and Remediation

Costs of fixing unsafe cladding and other historic defects remain one of the most pressing leasehold issues. Protections exist for some leaseholders, and funds and remediation programmes have been announced, but eligibility depends on the building and the leaseholder. Buyers should ask about the building’s safety status and any remediation plans. This area changes frequently. Check government guidance.

Theme 8: Sale and Purchase Process

Some reforms aim to make selling and buying leasehold homes smoother, for example by limiting fees for information needed in a sale and setting time limits for responses. If implemented, these would affect conveyancing timelines. Our article on what a solicitor checks explains the current process.

What a Solicitor Checks on a Leasehold Purchase

What Should You Do Now?

If you are a leaseholder

• Read your lease and know your remaining term.
• If your lease is short or has an unfavourable ground rent, speak to a specialist about whether to act now or wait for rule changes.
• Keep records of service charges and communications.
• Follow official updates from the government and the Leasehold Advisory Service.
• Do not delay urgent steps just because reform is expected unless a professional advises it.

If you are buying

• Ask your solicitor how reform could affect the specific property.
• Check lease length, ground rent and service charges carefully.
• Ask lenders about their policies.
• Avoid paying a premium for anticipated reforms that may not arrive in the form or timing you expect.

If you are a member of a residents’ group

• Discuss whether to explore Right to Manage or buying the freehold, and keep an eye on how the rules for these routes change.

Frequently Asked Questions

Has leasehold been abolished?

No. Leasehold remains a common form of ownership in England and Wales. Reform aims to improve it and encourage alternatives.

Should I wait for reform before extending my lease?

It depends on your lease, your plans and the timing of the rule changes. Ask a specialist solicitor and valuer, who can model the options.

Do the changes apply across the UK?

Housing law is largely devolved. This article focuses on England. Wales, Scotland and Northern Ireland have their own rules and reform programmes.

Where can I find up-to-date information?

Check official government pages, the Leasehold Advisory Service and your solicitor for the current commencement status.

Conclusion

Leasehold reform in 2026 is best understood as a series of moving parts: extensions and freehold purchase, ground rents on existing leases, commonhold, transparency, management standards and building safety. Some changes are law already, others await regulations. Keep your lease details to hand, follow official updates and take specialist advice before making a big decision that depends on which rules are in force.