Commonhold and Leasehold Reform Bill

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.