The Government has published the draft Commonhold and Leasehold Reform Bill, which it says is designed to “modernise, strengthen and reinvigorate the commonhold and leasehold framework”.

The policy that has attracted the most attention is the introduction of a cap of £250 on ground rent, with the intention that it will be phased out entirely within 40 years. At the same time, the Bill proposes a ban on the use of leasehold for new flats, covering everything from purpose-built residential developments to commercial buildings that have been newly developed to contain flats.

Underlying these changes is not only the Government’s stated desire to “bring the feudal leasehold system to an end this parliament”, but also a broader aim to establish a new comprehensive legal framework – akin to those found in many other countries – under which commonhold will become the default model. As the accompanying consultation document explains, “at the heart of the commonhold model is a simple principle: the people who should own buildings, and who should exercise control over their management, shared facilities and related costs, are not third-party landlords, but the people who live within them and have a direct stake in their upkeep”. To encourage the transition to commonhold, the Bill also includes measures to enable existing leaseholders to convert to commonhold where a majority of residents agree.

It is not just residential properties that will be affected: the consultation discusses how the change to a commonhold framework will be well suited for use in mixed blocks of residential and commercial developments by “introducing ‘sections’ to allow for delegated decision-making and new ways to apportion costs”. It also asks whether the owner of a building with a sitting commercial tenant and no residential long leases should be required to change to commonhold if they wish to sell a new flat in the building.

More generally, the consultation invites views on all aspects of the Bill, including whether there is a case for exemptions in circumstances where leasehold arrangements may remain more appropriate or preferable.

The consultation is open until 24 April 2026 and can be found here.