Delayed draft bill and rising frustration
In evidence to the HCLG Committee on 23 November, Secretary of State Steve Reed had pledged the draft Bill would be brought forward “before the end of the year”. However, a letter dated 18 December 2025 from Pennycook, published by the Committee, confirms the draft will now emerge in the New Year due to unforeseen delays. The draft is intended for pre-legislative scrutiny by the Committee before the introduction of a full Bill in Parliament.
Florence Eshalomi MP, Chair of the Committee, said the failure to publish before year-end was “deeply disappointing”, warning the hold-up “will cause further uncertainty for long-suffering leaseholders” and could make meaningful reform during this Parliament “a real challenge”. Eshalomi reiterated the importance of getting technical details right, so reforms deliver for leaseholders rather than leaving issues unresolved.
What the wider reform programme looks like
The draft Commonhold and Leasehold Reform Bill sits at the centre of a broader, long-running programme of leasehold reform. The Government first committed to overhaul the centuries-old leasehold framework in the 2024 King’s Speech— including reinvigorating commonhold ownership and modernising leaseholder rights — to bring the “feudal” system to an end.
A Commonhold White Paper, published in March 2025, proposed making commonhold the default tenure and outlined how the legal framework might work, including the conversion of existing leaseholds and the banning of new leasehold flats. The Bill is expected to build on these proposals and implement remaining Law Commission recommendations, as well as codifying measures to regulate ground rents, abolish the disproportionate threat of forfeiture and strengthen enfranchisement and management rights.
Propertymark: frustration but continued calls for reform
Industry and consumer groups have voiced concern that delays undermine confidence and prolong unfair practices that have plagued the leasehold system for decades. Propertymark, the professional body representing estate agents, has been a consistent campaigner for leasehold reform since 2017, highlighting long-standing issues, including:
- The absence of a comprehensive ban on new leasehold homes
- The lack of a cap on ground rents for existing leaseholders
- The high cost and complexity of extending leases and buying freeholds
- The need for clearer rights and better protections for buyers and sellers of leasehold property
Leasehold and Freehold Reform: what has changed?
The Labour Government has committed to driving forward the enforcement of the Leasehold and Freehold Reform Act 2024. Propertymark has campaigned on leasehold reform since 2017, including the lack of a ban on new leaseholds, restrictions on ground rent, and no ground rent cap for existing leaseholders. This research, produced in 2023, highlights the ongoing issues and sentiments of Propertymark Member agents and is still prevalent in our campaign to drive change.
In previous responses to UK Government leasehold plans, Timothy Douglas, Propertymark’s Head of Policy and Campaigns, said that while initiatives to provide more rights and protections to leaseholders are welcome, “key questions remain” on how reforms will be implemented in practice — particularly around phasing out leasehold on new flats and strengthening consumer protections such as regulating property management practices.
Propertymark has also called for clarification on legislative timetables and welcomed early steps under the Leasehold and Freehold Reform Act 2024 — such as removing the two-year ownership requirement before lease extensions and reforms to enfranchisement — but stresses that more must be done to make buying and selling leasehold property simpler, cheaper and fairer.
Leasehold reform’s long road
The Leasehold and Freehold Reform Act 2024 introduced changes — including measures to make enfranchisement easier, increase transparency around service charges, and remove the two-year rule — but it did not include ground rent caps for existing leases or a full ban on new leasehold homes. The Government now aims to fill those gaps through the forthcoming Bill and secondary legislation.
Despite current delays, the draft legislation is expected to set out a clear path toward abolishing much of the leasehold system and replacing it with a strengthened commonhold regime — a transition Propertymark and other campaigners insist must be delivered with clarity, fairness and urgency to protect millions of homeowners.
