Here’s the latest UK government leasehold reform update (England and Wales) as of 27 February 2026.
What’s already law (but not all “live” yet)
Leasehold and Freehold Reform Act 2024 is on the statute book, but many provisions are still waiting for commencement regulations (so they’re not all in force yet).
One key change already in force: the “2-year ownership rule” was removed (so qualifying leaseholders don’t need to own for 2 years before extending/enfranchising).
What’s just been published (new in 2026)
On 27 January 2026, the government published a Draft Commonhold and Leasehold Reform Bill (draft stage – not law yet).
Core direction of travel: make commonhold work in practice and move away from leasehold, including a ban on new leasehold flats (with industry commentary suggesting a phased timeline, potentially from 2029).
Ground rents and wider impacts
Government policy being trailed alongside the draft Bill includes capping ground rents (reported as £250 per year, with a pathway towards a “peppercorn” later).
Consultations and next steps
A current government consultation is focused on moving to commonhold and banning leasehold for new flats (policy detail still being shaped).
Parliament’s Library briefing is keeping track of the overall programme and status (useful reference point when clients ask “what’s actually happening”).
