Although the Draft Commonhold and Leasehold Reform Bill was published in January 2026, followed by consultations and evidence sessions, no further legislation has been enacted. In the meantime, leaseholders remain at the centre of ongoing challenges and negative headlines.
Progress to address these issues has been slow and diluted. While proposals include capping ground rents at £250 and reducing them to a peppercorn rate after 40 years, this timeframe is double that promised by the previous government. More critically, leaseholders are still awaiting meaningful regulation of service charges—arguably the most significant barrier to property sales.
The BBC continues to highlight the declining value of leasehold properties, with some selling for less than half their previous price. At the same time, many property owners have experienced service charge increases of over 50% in a short period. In many cases, leaseholders receive little or no explanation for these increases, nor evidence of improved services to justify the additional cost.
Retirement properties present particularly challenging scenarios, with families often facing substantial service charges on empty homes that prove difficult or impossible to sell following inheritance.
In addition, unresolved building remediation issues and increased consumer awareness are driving tougher negotiations from potential buyers. As understanding of leasehold risks grows, many purchasers are becoming more risk-averse, often avoiding leasehold properties altogether.
The UK Government must act to ensure that leasehold homes remain viable assets rather than being lost from the housing market, thereby undermining wider efforts to address the housing crisis.
Material information requirements
The Digital Markets, Competition and Consumers Act (2024) requires that consumers be provided with all necessary information—referred to as “material information”—to make informed purchasing decisions. This requirement has been acknowledged as applying to property transactions, particularly in listings.
As awareness of leasehold complexities increases, so too does the need for comprehensive upfront information. However, accessing this information remains challenging. Key details are often fragmented across multiple parties, including managing agents, freeholders, HM Land Registry, leaseholders, and legal representatives.
This creates additional pressure on all parties involved, slows transaction timelines, and in some cases leads to sales falling through entirely.
Nevertheless, improved transparency can also benefit the market. Where costs are clearly explained and justified from the outset, buyers are better equipped to make informed decisions, reducing uncertainty and improving transaction success rates.
The Lords have it
During a House of Lords debate on 20 May 2026, Baroness Merron stated that the Commonhold and Leasehold Reform Bill aims to protect first-time buyers by addressing systemic abuses and promoting commonhold as the default tenure. The intention is to create a fairer and more transparent system of homeownership.
In response, Baroness Shah highlighted the reality that many young buyers face, particularly those entering the market through flats. Instead of security, they encounter ground rents, service charges, and limited control over their property.
The UK Government estimates indicate that leaseholders paid more than £600 million in ground rent in 2025 alone. For buyers already managing large deposits and long-term mortgages, these additional costs represent a significant and disproportionate financial burden.
It is essential that legislators fully understand the extent of these challenges as debates continue.
Making leasehold a thing of the past
Propertymark acknowledges that some progress has been made but continues to advocate for comprehensive reform. Action is needed to prevent homeowners from becoming trapped, return empty leasehold properties to the housing market, and ultimately replace leasehold with a fairer system.
Only through decisive reform can future homeowners purchase property with confidence and certainty.
