Leasehold Reform and Commonhold Changes 2026: What the King’s Speech Means for UK Property

June 11, 2026

2026 has marked a significant period of reform across the Real Estate Sector.

The King’s Speech on 13 May 2026 set out a broad legislative programme spanning housing, energy and economic reform including further proposals progressing the Government’s plans for the real estate sector.

Commonhold and Leasehold Reform Bill 2026 Explained

Earlier in the year, the Government published a draft Commonhold and Leasehold Reform Bill. The Bill forms part of a wider programme of reform aimed at changing how residential property is owned and managed in England and Wales.

A central feature of the Bill is the proposed move away from leasehold ownership for new flats, with commonhold intended to become the default tenure. This marks a significant structural shift, replacing a time limited system subject to a freeholder with one in which unit owners hold a freehold interest in their property.

The Bill also introduces protections for existing leaseholders. In particular, ground rent will be capped at £250 per annum for most existing long residential leases. This cap will apply for a period of 40 years, after which ground rent will reduce to a peppercorn. This measure is intended to address longstanding concerns around escalating and, in some cases, onerous ground rent provisions which have impacted affordability and property owners’ ability to sell or mortgage leasehold properties.

In addition, the Bill provides for the abolition of forfeiture. Under the current system, forfeiture allows a landlord to terminate a lease in the event of a breach of covenant. The proposed reforms will remove this remedy and replace it with a new leasehold enforcement scheme whereby in most cases, a court will determine a proportionate remedy.

What Is Commonhold and How Does It Work in the UK?

Under commonhold, each unit holder owns a freehold equivalent interest in their property. The management of the building is carried out by a commonhold association who holds the freehold title to the shared and communal areas of the property. This is a corporate body made up of all unit holders, who automatically become members. The association is responsible for the management of the common parts which typically includes maintenance, repair and insurance.

The commonhold community statement will govern the management of the building and the decision-making processes of the commonhold association.

When Will Leasehold Reform Come into Force? (Timeline & Next Steps)

Alongside the draft Bill, the Government launched the “Moving to Commonhold” consultation. This sought views on how the transition away from leasehold for new flats should operate in practice, including the scope of any restrictions and the timing of implementation.

The consultation closed on 24 April 2026. The Government is expected to publish its response before introducing a final version of the Bill to Parliament.

Remediation Bill 2026

Building safety remains a central issue within the property market. In particular, the presence of unsafe cladding continues to affect the ability of leaseholders to sell, finance and occupy their homes.

The Government’s remediation proposals are intended to accelerate the identification and removal of unsafe cladding from residential buildings. A key feature of the proposed Remediation Bill is the introduction of a clear legal duty on those responsible for buildings to identify, assess and remediate safety defects.

This is expected to be supported by defined timeframes for remediation and strengthened enforcement powers. Failure to comply may result in significant sanctions, including financial penalties and potential criminal liability.

The Government’s proposals form part of its wider Remediation Acceleration Plan, which is intended to accelerate the identification and remediation of residential buildings in England with unsafe cladding.

The Government has also set clear deadlines for remediation. Buildings over 18 metres are expected to be remediated by the end of 2029. Buildings between 11 and 18 metres are expected to be remediated by the end of 2031.

The enforcement regime is intended to be significantly strengthened. Where responsible parties fail to comply with the duty to remediate, this may result in criminal sanctions, including fines and, in some cases, imprisonment.

What These Property Law Changes Mean for Buyers, Developers and Investors

The reforms outlined in the 2026 King’s Speech signal a continued period of change for the Real Estate sector. The shift towards commonhold, together with building safety measures and changes to payment practices, will affect how property is owned, managed and developed. Careful consideration will need to be given to how these reforms interact with existing and future arrangements, particularly as further detail emerges.

To discuss how these changes could affect you, your business or your property investments, please contact us.

Liz Hailey
Partner, Head of Real Estate
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This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.

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