Commonhold and Leasehold Reform Bill
Commonhold and Leasehold Reform Bill
Last refreshed: 14 May 2026
Will the Commonhold Bill finally end ground rents, or leave millions of existing leaseholders behind?
Timeline for Commonhold and Leasehold Reform Bill
King's Speech: 27 bills, no RPA Bill
UK Local Elections 2026- What is the Commonhold and Leasehold Reform Bill 2026?
- A government bill introduced in the May 2026 King's Speech to make commonhold the default tenure for new-build flats in England and Wales, replacing the leasehold system where flat-owners hold time-limited leases rather than freehold title.Source: King's Speech 2026
- Will the new leasehold reform bill help existing leaseholders?
- The bill primarily targets new-build properties. The position of existing 4.8 million leasehold flat-owners in England depends on transitional provisions not yet published in the bill text.Source: King's Speech 2026 briefing
- What is the difference between leasehold and commonhold?
- Leasehold gives the buyer a time-limited stake in the property (typically 99-125 years), with a freeholder retaining ownership. Commonhold gives flat-owners a permanent share in the freehold, eliminating ground rents and freeholder service charges.Source: Law Commission
Background
The Commonhold and Leasehold Reform Bill was introduced in the 13 May 2026 King's Speech as part of the government's first full legislative programme. It addresses the long-running leasehold system in England and Wales, under which most flat-owners hold time-limited leases rather than freehold title, leaving them subject to ground rents, service charges set by freeholders, and deteriorating lease values. The bill aims to make commonhold — a shared freehold model already standard in Scotland and most of Europe — the default for new multi-occupancy residential buildings.
The policy was a Labour 2024 manifesto commitment, but the groundwork dates to the Law Commission's 2020 report on leasehold and commonhold reform, which followed a consultation launched under the 2019 Conservative government. A previous Leasehold and Freehold Reform Act reached the statute book in 2024 but did not abolish leasehold; this bill is intended to go further by phasing in commonhold as the mandatory tenure for new-builds. No bill text was published alongside the King's Speech, and the detailed transition timetable for existing leaseholders remains unspecified.
If passed, the bill would affect an estimated 4.8 million leasehold flats in England alone. Freeholder and property-management interests are expected to contest the valuation methodology for the commonhold conversion. The Commons first reading is expected in summer 2026.