This page records the current legislative status of the leasehold reform programme in England and Wales. Each entry states the provision, the relevant legislation, and its status as at June 2026. Entries are updated as provisions are commenced, as secondary legislation is made, and as parliamentary progress occurs. Entries are records of legislative fact.
| Label | Meaning |
|---|---|
| In Force | The provision has commenced and applies in England and Wales. |
| Passed | The Act has received Royal Assent but this specific provision has not yet been commenced by order. |
| Pending | The provision requires secondary legislation or prescribed rates not yet made. |
| Delayed | Commencement was expected but has been deferred pending further consultation or legislation. |
| In Parliament | The measure is in a Bill currently before Parliament and is not yet law. |
Ground Rent Act 2022
Peppercorn rent for new regulated residential leases
Ground rent on new regulated residential leases is restricted to a peppercorn — effectively zero. Any financial ground rent demanded on a regulated lease is a prohibited rent. A landlord who demands a prohibited rent commits a civil offence and may be subject to a financial penalty of between £500 and £30,000. In force from 30 June 2022 for most regulated leases; from 1 April 2023 for retirement housing. The Act does not apply to leases granted before those dates.
LFRA 2024 — In Force Provisions
Abolition of the two-year ownership requirement (s.27)
Leaseholders of houses and flats no longer need to have owned their property for two years before making a lease extension or enfranchisement claim. Amends both the Leasehold Reform Act 1967 (houses) and the Leasehold Reform, Housing and Urban Development Act 1993 (flats). In force from 31 January 2025 under SI 2025/57 (Commencement No. 2 and Transitional Provision).
Right to Manage: non-residential threshold increased from 25% to 50% (s.49)
The non-residential floor area threshold for Right to Manage eligibility has increased from 25% to 50%. Buildings or estates where non-residential areas exceed 50% of total internal floor area remain excluded. In force from 3 March 2025 under SI 2025/131 (Commencement No. 3).
Right to Manage: restriction on landlord cost recovery (s.50, s.64)
The previous default position — under which RTM companies and their members were liable for all landlord costs following service of an RTM claim notice — has been reversed. Landlord costs are now recoverable only where a court or tribunal makes a specific order. In force from 3 March 2025 under SI 2025/131 (Commencement No. 3).
Right to Manage: first-instance applications barred from the High Court (s.52)
First-instance applications in Right to Manage proceedings must now be made to the appropriate tribunal, not the High Court. In force from 3 March 2025 under SI 2025/131 (Commencement No. 3).
LFRA 2024 — Pending Provisions
Valuation reform: abolition of marriage value and new premium methodology
The LFRA 2024 abolishes marriage value in calculating lease extension and enfranchisement premiums, and empowers the Secretary of State to prescribe the rates used in premium calculations (deferment rate, capitalisation rate). These provisions require secondary legislation — the rates must be prescribed by regulation before the new valuation methodology can take effect. A government consultation on the rates was delayed following a judicial review challenge brought by freeholder groups. The High Court dismissed that challenge on 24 October 2025; permission to appeal was subsequently granted to five freeholder groups. The government expects to consult on valuation rates during 2026. No commencement date has been set. Current premiums are calculated under the existing law.
990-year statutory lease extension term
The LFRA 2024 amends the Leasehold Reform, Housing and Urban Development Act 1993 to extend the statutory lease extension term from 90 years to 990 years. This provision is in the Act but has not been commenced by order. It is expected to be brought into force alongside the valuation reform provisions, as the new term and the new premium methodology are interconnected. No commencement date has been announced. Statutory lease extensions under the 1993 Act currently add 90 years.
Service charge transparency and buildings insurance obligations
The LFRA 2024 contains provisions strengthening leaseholders' rights to information about service charges and requiring greater transparency in buildings insurance, including disclosure of commissions received by landlords or agents. These provisions are in the Act but have not been commenced by order as at June 2026. The government consulted in July 2025 on further proposed reforms to service charge regulation and managing agent qualifications; the consultation closed September 2025 and responses are under analysis.
Prohibition on the grant of new leasehold houses
The LFRA 2024 prohibits the creation of new residential leasehold houses. This provision is in the Act but has not been commenced by order as at June 2026.
Parliamentary Progress
The draft Commonhold and Leasehold Reform Bill was published on 27 January 2026 for pre-legislative scrutiny. The King's Speech of 13 May 2026 confirmed the government's intention to introduce the final Bill during the 2026–27 parliamentary session. The Housing, Communities and Local Government Committee published its pre-legislative scrutiny report on 27 May 2026, recommending introduction in autumn 2026 with Second Reading before the November recess and Royal Assent by mid-2027. The government has until 26 July 2026 to respond to the Committee's recommendations. None of the measures below are currently law.
Ground rent cap at £250/year for existing leases
The draft Bill proposes capping ground rents on existing residential leases at £250 per year, reducing to a peppercorn after 40 years. The government's initial estimate placed commencement in late 2028; as at June 2026, the government is reported to be considering bringing this forward to late 2027. This measure is subject to parliamentary approval and no commencement date has been set. The Leasehold Reform (Ground Rent) Act 2022 separately sets peppercorn rent for new leases.
Commonhold as default tenure for new residential flats
The draft Bill proposes banning the grant of leasehold for most new residential flats and making commonhold the default tenure. The Housing Minister has indicated this provision is unlikely to be commenced in the current Parliament. A consultation on the implementation of the ban closed on 24 April 2026.
Abolition of forfeiture; new proportionate enforcement scheme
The draft Bill proposes replacing the landlord's right to forfeit a lease — the right to terminate the lease entirely for breach — with a new, graduated enforcement mechanism. The government estimates this could commence shortly after Royal Assent if the Bill receives it by mid-2027.
Conversion of existing leaseholds to commonhold
The draft Bill provides a route for existing leaseholders to convert to commonhold, requiring collective purchase of the freehold first, followed by a vote on conversion. The Committee's scrutiny report recommends conversion be made the automatic outcome of a successful collective enfranchisement claim, unless the building opts out.
Technical corrections to the LFRA 2024
The draft Bill contains provisions to correct identified technical flaws in the Leasehold and Freehold Reform Act 2024 — defects which prevent certain provisions of that Act from operating as intended. These corrections are a precondition for commencing the LFRA 2024's valuation reform provisions.
Earlier Reform Acts: Status
Leasehold Reform Act 1967
Gives long leaseholders of houses the right to extend their lease or purchase the freehold. Applies in England and Wales. Amended by the LFRA 2024, including removal of the two-year ownership requirement (in force January 2025); further amendments pending commencement.
Leasehold Reform, Housing and Urban Development Act 1993
The primary framework for flat lease extensions and collective enfranchisement. Provides the statutory right to extend a flat lease by 90 years (the extension term will increase to 990 years when the relevant LFRA 2024 provisions are commenced) and the right of qualifying flat leaseholders to collectively purchase the freehold. Applies in England and Wales.
Commonhold and Leasehold Reform Act 2002
Introduced commonhold tenure (not widely adopted in practice) and established the Right to Manage. Amended the service charge regime under the Landlord and Tenant Act 1985 and introduced the Section 20 major works consultation requirement. Applies in England and Wales. RTM provisions amended by LFRA 2024 (in force from March 2025).
Building Safety Act 2022
Provides protections for qualifying leaseholders against the cost of certain building safety remediation works, including cladding replacement. Establishes the role of accountable persons and the framework for building safety obligations on high-rise residential buildings. See Building Safety and Cladding for the detail of leaseholder protections under this Act.