Progress, Delay and a Fundamental Shift in Property Ownership

Leasehold reform remains one of the most significant and widely discussed changes within the UK property sector. Recent reports indicate growing pressure on the Government to clarify delays and next steps in implementing long promised reforms, particularly following the publication of the draft Commonhold and Leasehold Reform Bill in early 2026.

While progress is being made, the evolving timeline highlights both the complexity of reforming the leasehold system and the importance of understanding what these changes could mean for homeowners, buyers and developers.

Why Leasehold Reform Matters

Leasehold has long been the dominant form of ownership for flats in England and Wales. However, concerns around rising ground rents, service charges and limited control for leaseholders have led to sustained calls for reform.

The Government’s objective is to modernise property ownership, improve fairness and ultimately move away from the traditional leasehold model.

The Draft Reform Bill: Key Proposals

In January 2026, the Government published the draft Commonhold and Leasehold Reform Bill for pre legislative scrutiny.

The proposals represent a significant shift in how property ownership may operate in the future. Key measures include:

1. Moving Towards Commonhold as the Default

One of the most notable proposals is to make commonhold the default tenure for new flats, replacing leasehold over time.

Under a commonhold system, homeowners would own their property outright, rather than holding a lease for a fixed term, and would collectively manage shared areas.

2. Ban on New Leasehold Flats

The draft Bill proposes to prohibit the sale of new leasehold flats, marking a fundamental change in the structure of new developments.

Importantly, this change is expected to apply prospectively, meaning existing leasehold properties would not automatically be converted.

3. Reform of Ground Rents and Lease Terms

The legislation also introduces measures aimed at improving fairness for existing leaseholders, including:

• Capping ground rents in existing leases
• Simplifying the process of extending leases
• Removing certain costs such as “marriage value” in lease extensions (subject to implementation)

These changes are designed to make ownership more transparent and reduce long term financial burdens.

4. Greater Protection for Leaseholders

Additional proposals include:

• Abolition of forfeiture in residential leases (in certain cases)
• Improved transparency around service charges
• Stronger rights and control for property owners within managed buildings

Delays and Ongoing Uncertainty

Despite the publication of the draft Bill, progress has not been entirely straightforward.

The Government had initially committed to bringing forward the legislation earlier, but delays in late 2025 led to criticism from industry bodies, MPs and campaign groups.

These delays reflect the technical and legal complexity involved in overhauling a long established system affecting millions of properties across England and Wales.

At present, many of the proposed changes remain subject to consultation, scrutiny and further legislative development before full implementation.

What This Means for Buyers and Sellers

For those buying or selling property in East Kent and beyond, the proposed reforms are important but should be viewed in context.

For Buyers

• Leasehold properties remain widely available and legally valid
• Mortgage lenders continue to lend on leasehold homes
• However, buyers are increasingly aware of lease terms, ground rents and service charges

For Sellers

• Properties with shorter leases or higher charges may require more careful pricing and positioning
• Transparency around lease details is becoming more important in attracting buyers

Implications for Developers and Investors

For developers, the potential transition away from leasehold presents both challenges and opportunities.

• Future schemes may need to adopt commonhold structures
• Legal frameworks for managing shared buildings will evolve
• Early understanding of these changes will be critical in scheme design and viability

At the same time, the delay in implementation means that leasehold remains the current framework for new developments in the short term.

A Period of Transition

The direction of travel is clear: the Government intends to reduce reliance on leasehold and expand commonhold ownership.

However, the transition will take time. With millions of existing leasehold properties and complex legal considerations, reform is likely to be phased over several years.

For now, the market continues to operate within the existing system, albeit with increasing awareness and scrutiny from buyers and professionals alike.

How Finn’s Can Help

At Finn’s, we continue to monitor legislative changes closely and advise clients accordingly across residential sales, lettings, development and professional services.

Whether you are buying, selling or developing property, understanding how leasehold reform may affect your decision making is essential.

Conclusion

Leasehold reform represents a significant shift in the UK property landscape, with the draft Bill setting out ambitious proposals to reshape ownership for future generations.

While delays have created some uncertainty, the long term direction is towards a more transparent and owner focused system.

Speak to Our Team

If you would like advice on buying, selling or developing property in light of these changes, contact Finn’s for a confidential discussion with one of our experienced team.