Library · Draft Bill
Draft Commonhold and Leasehold Reform Bill (2026)
Published in draft on 27 January 2026: a £250 ground rent cap, abolition of forfeiture, a ban on new leasehold flats and a new commonhold regime. A proposal, not law.
What it proposes
The government published the draft Bill for pre-legislative scrutiny on 27 January 2026. The main proposals are:
- Ground rent: cap existing residential ground rents at £250 a year, falling to a peppercorn after 40 years.
- Forfeiture: abolish it for long residential leases and replace it with a statutory enforcement scheme.
- New flats: ban new long leases of flats, so new flats would be sold as commonhold, with some exemptions.
- Commonhold: replace the 2002 regime, allow conversion with 50% of qualifying leaseholders, and add tribunal powers to appoint directors.
- Estate rentcharges: remove the harshest remedies for unpaid estate rentcharges.
Status
Proposed. It is not law and its content may change before it is introduced to Parliament. In July 2026 the government restated its aim to end leasehold but gave no timetable.
What it means for a self-managed block
Nothing changes yet. Blocks thinking about converting to commonhold should follow the Bill’s progress; Freeholdpilot’s data model already supports commonhold associations.
Read the official text at gov.uk
Contains public sector information licensed under the Open Government Licence v3.0. Summary by Freeholdpilot, checked 1 November 2026. This is legal information about the law in England and Wales, not legal advice for your building. For advice, speak to a solicitor.