A central part of the reform programme is the draft Commonhold and Leasehold Reform Bill, which was published in January 2026. The Bill introduces a new legal framework for commonhold and includes measures to ban the use of leasehold for new flats, building on the existing ban on most new leasehold houses.
The UK Government’s position is that leasehold should be stopped from renewing itself, while existing leaseholders should be given clearer routes to take control of their buildings and leave the system when they choose. The draft Bill proposes a new conversion process that would allow a block to move to commonhold where at least 50% of qualifying leaseholders agree.
Propertymark supports the ambition to make commonhold a more realistic option, but we have warned that the shift will need careful implementation. Commonhold will involve new documents, new processes, new management arrangements and new responsibilities for homeowners and property professionals. Consumers and agents will need clear guidance and practical support to understand how the system works.
Ground rent cap must not leave leaseholders waiting too long
The Minister also confirmed that the UK Government intends to cap ground rents at £250 per year, before reducing them to a peppercorn rate after 40 years.
Propertymark welcomes the commitment to bring ground rents down, but we have raised concerns about the proposed timeframe. Our evidence to the Housing, Communities and Local Government Committee stated that a 40-year transition is too slow to provide meaningful relief for many existing leaseholders. We have also warned that the cap must not allow ground rents that are currently below £250 to be increased to that level where no escalation clause exists.
This matters for the market now. Our research found that 78% of agents said leasehold properties with escalating ground rent would struggle to sell, even if priced correctly.
Propertymark urges action on costs, safety, and standards in commonhold reform
The Housing, Communities and Local Government Committee is examining whether the Draft Commonhold and Leasehold Reform Bill will strengthen the rights of leaseholders and effectively pave the way for commonhold in practice. We’ve provided written evidence, based on feedback from members, which focuses on the areas where change is most urgently needed to support agents and consumers and create a housing market that functions more effectively.
Service charges remain a major barrier to leasehold sales
While ground rents are a key part of the debate, Propertymark has consistently highlighted that service charges are often a bigger problem for agents, buyers and sellers.
In his speech, Pennycook said the UK Government wants to switch on measures in the Leasehold and Freehold Reform Act 2024 to standardise and improve the transparency of service charges, introduce fair permitted buildings insurance fees and rebalance the legal costs regime so leaseholders are not deterred from challenging landlords.
Propertymark has long called for action in this area. Our member feedback shows that high, unclear or unpredictable service charges can deter buyers and slow down transactions. We have argued that charges must reflect the real cost of maintaining buildings and be presented clearly so residents understand what they are paying for.
Building safety and insurance costs must be part of reform
Leasehold reform cannot be separated from building safety. Many leaseholders remain unable to sell or remortgage due to unresolved safety defects, and some continue to face high insurance costs even after remediation work has been completed.
Propertymark’s evidence has highlighted that reform must address the wider financial pressures facing residents, including the impact of building safety defects and rising insurance premiums. We have warned that, without further action, leaseholders affected by safety defects will continue to face uncertainty and increased costs.
Regulation of property agents is essential
As the market moves towards commonhold, professional standards must sit at the heart of reform.
The UK Government must not underestimate the responsibility that will fall on commonholders, property agents and estate agents, who will need to understand the details as they support consumers buying and selling commonhold property. It is vital that commonholders and leaseholders can rely on a professional and regulated property agent and management sector.
Propertymark continues to call for the UK Government to implement the recommendations of the Regulation of Property Agents Working Group. This would introduce mandatory qualifications, a statutory code of practice and a licensing system for property agents, helping to raise standards and give consumers greater confidence.
Leasehold reform remains an extremely challenging area. Propertymark has long campaigned for the UK Government to address concerns raised by both consumers and property agents, including the complexities of the leasehold market and the need for stronger safeguards to protect consumers from unfair lease terms.
Propertymark will continue to work closely with the UK Government to help ensure there is a clear and practical pathway towards restructuring leasehold, so that millions of consumers can benefit from a system that provides them with clarity and greater fairness.
