Leasehold Reform 2026: What's In Force and What's Still a Draft

Leasehold reform in England and Wales is in an unusual, easy-to-misread state: a major Act has already received Royal Assent, but most of what it does is still switched off, while a second, more ambitious bill exists only as a draft that has not even been introduced to Parliament. This guide sets out exactly what is law today, what is not, and what is only a proposal.

Where These Reforms Apply

The Leasehold and Freehold Reform Act 2024 extends to England and Wales only, and the draft Commonhold and Leasehold Reform Bill is also an England and Wales measure. Leasehold, as a form of home ownership where you own the property for a fixed term but not the land it sits on, works differently in the other two UK nations.

Scotland has effectively no residential long leasehold. Since the Land Tenure Reform (Scotland) Act 1974, a new lease of more than 20 years cannot be used for a private home, and the Long Leases (Scotland) Act 2012 converted most remaining ultra-long leases into ownership. Flats and other properties with shared structures in Scotland are instead governed by the Tenements (Scotland) Act 2004, which sets out ownership and repair responsibilities for the structure of a building split into separate units. If you own a flat in Scotland, you almost certainly own it outright, not on a lease.

Northern Ireland does have residential leasehold and ground rents, but under its own law. For example, the Ground Rents Act (Northern Ireland) 2001 gives a rent-payer a right to redeem a ground rent. Everything in this guide about the 2024 Act, ground rent reform and lease extension applies to England and Wales, not Scotland or Northern Ireland.

The Leasehold and Freehold Reform Act 2024: What's Actually Live

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024. It is a real Act of Parliament, but Royal Assent only means Parliament has approved the text, not that every section has legal effect. Much of this Act's substance, including its headline valuation and 990-year lease extension reforms, is still waiting for the secondary legislation (statutory instruments) needed to switch it on. Several parts are live: protections on rentcharge arrears and on recovering building-safety legal costs through the service charge (from 24 July 2024), changes to building-safety remediation orders and remediation contribution orders (from 31 October 2024), and the two leaseholder changes below.

In force since 31 January 2025: no more 2-year wait

Section 27 of the Act removed the requirement that a leaseholder had to have owned their flat or house for at least 2 years before they could claim a lease extension or enfranchise (buy the freehold or a share of it). This commenced on 31 January 2025. In practice, this means a leaseholder can now start the statutory process on the day they complete their purchase, rather than waiting 2 years, which previously forced many buyers to negotiate privately with the freeholder on worse terms in the meantime.

In force since 3 March 2025: a bigger Right to Manage

Section 49 raised the non-residential floorspace limit for a Right to Manage (RTM) claim from 25% to 50%, commencing on 3 March 2025 alongside related provisions on RTM costs (sections 50 to 52 and part of section 64). Right to Manage lets qualifying leaseholders take over the management of their building without buying the freehold. Previously, a building with more than 25% non-residential floorspace, such as ground-floor shops, could block leaseholders from qualifying. That ceiling is now 50%, opening up RTM to more mixed-use buildings.

What's Not Yet in Force

Two of the Act's most significant reforms are still switched off.

Marriage value abolition and a new valuation method. The Act intends to abolish "marriage value", a payment historically charged to leaseholders extending a short lease that reflects the jump in combined value once the lease and freehold are reunited, and to replace the wider valuation approach for lease extensions and enfranchisement. This requires a government consultation on the actual rates used in the new valuation calculation, followed by secondary legislation. The government opened a consultation on those rates on 15 July 2026, with a closing date of 21 October 2026 (extended from its original date). It has also said it cannot commence the new enfranchisement process until some specific flaws in the 2024 Act are fixed through new primary legislation, which it intends to do in the Commonhold and Leasehold Reform Bill. Implementation has also been delayed by a legal challenge: freeholders, in several separate claimant groups, brought a judicial review arguing the reforms unlawfully interfere with their property rights. The High Court dismissed that challenge on 24 October 2025, but the Court of Appeal granted permission to appeal on 1 April 2026, and the case remains live. Until the valuation reforms are actually commenced, lease extension and enfranchisement calculations still use the existing rules, including marriage value where a lease has under 80 years left.

Service charge transparency. Section 55 of the Act, which would require landlords to use a standardised, specified form when demanding a service charge, has also not been commenced. See our guide to service charges for what does apply right now under the existing law.

The House of Commons Library has tracked this rollout closely; its briefing "Leasehold reform in England and Wales: what's happening and when?" is a reliable, regularly updated source if you want the current state at a glance.

The Commonhold and Leasehold Reform Bill: A Draft, Not a Law

Separately from the 2024 Act, the government published a draft Commonhold and Leasehold Reform Bill on 27 January 2026. This is genuinely a different, and much earlier, stage of the process than the 2024 Act.

A "draft bill" is published for pre-legislative scrutiny, meaning a parliamentary committee, in this case the Housing, Communities and Local Government Committee, examines it and reports back with recommendations before the government decides whether and how to formally introduce it as a bill in Parliament. As of late September 2026, the draft Commonhold and Leasehold Reform Bill has not been introduced to Parliament. It has no bill number, has not had a first reading, and is not before the House of Commons or House of Lords. In July 2026 the government said the bill would be introduced "in the coming months", and even after introduction, a bill typically takes months to complete its parliamentary stages before it can receive Royal Assent and, on top of that, further time before specific provisions are commenced.

The draft bill's stated aims are significant: to make commonhold, a form of ownership where flat owners own their unit outright and jointly manage the building through a commonhold association, the default for new flats, effectively aiming to end the sale of new leasehold flats, and to cap ground rent for existing leaseholders (see our guide to ground rent for that specific proposal). None of this is currently the law. Treat any claim that leasehold flats are "banned" or that a new ground rent cap is "in force" as incorrect until an actual Act commences those provisions.

Timeline at a Glance

What This Means If You're a Leaseholder Right Now

If you completed your purchase recently, you no longer have to wait 2 years before starting a lease extension or enfranchisement claim, which is a genuinely useful, already-live change. If your building has retail or commercial space on the ground floor, check whether the higher 50% non-residential threshold now brings your block within reach of a Right to Manage claim. But if you are extending a short lease, do not assume marriage value has already been scrapped; ask your solicitor or a RICS valuer to confirm which valuation basis currently applies to your specific case, since this depends on the commencement position at the time you serve notice, not on media coverage of the wider reform programme.

For free, impartial guidance on leasehold rights as they stand today, the Leasehold Advisory Service (LEASE) is the government-funded body set up for this purpose, and does not charge for its general advice line.

This article explains the general state of leasehold reform law and is not a substitute for advice on your specific lease, which can turn on its exact terms and remaining length. For related topics, see our guides to ground rent and service charges, and the UK Property Law hub. If you are dealing with a leasehold property as part of an estate, see applying for probate and the Wills and Probate hub. If you rent rather than own, see the Tenant Rights hub.

Frequently Asked Questions

Is the Leasehold and Freehold Reform Act 2024 fully in force?

No. It received Royal Assent on 24 May 2024, but most of its provisions require secondary legislation before they take effect. Parts now in force include rentcharge-arrears and building-safety cost protections (from 24 July 2024), remediation order changes (from 31 October 2024), the removal of the 2-year ownership qualifying period (from 31 January 2025) and the Right to Manage changes, including the higher non-residential limit (from 3 March 2025). The valuation, 990-year extension and service charge demand reforms are not yet in force.

Has marriage value been abolished?

Not yet. The Act intends to abolish marriage value and change the valuation method for lease extensions, but this needs a government consultation on the valuation rates and further secondary legislation, and the government says some flaws in the Act must first be fixed by new primary legislation; it is also affected by an ongoing Court of Appeal case brought by freeholders. Until it is commenced, existing valuation rules, including marriage value on short leases, still apply.

Is the Commonhold and Leasehold Reform Bill an Act of Parliament?

No. It is a draft bill published on 27 January 2026 for pre-legislative scrutiny by a House of Commons committee. It has not been introduced to Parliament, has no bill number, and is not law. In July 2026 the government said it would be introduced in the coming months; once introduced, it would still need to pass through Parliament before becoming an Act.

Will leasehold flats be banned?

Banning new leasehold flats and making commonhold the default is a stated aim of the draft Commonhold and Leasehold Reform Bill, not a current rule. Leasehold flats can still be sold now, and this would only change once a bill containing that provision is passed and commenced.

Do I still need to wait 2 years to extend my lease?

No. Since 31 January 2025, the 2-year ownership qualifying period has been removed, so you can start a statutory lease extension or enfranchisement claim as soon as you own the property, without waiting.

Does leasehold reform apply in Scotland?

No. Scotland has effectively no residential long leasehold: the Land Tenure Reform (Scotland) Act 1974 bars using property held on a new lease of more than 20 years as a private home, and the Long Leases (Scotland) Act 2012 converted most remaining ultra-long leases into ownership. Flats and tenements are governed by the Tenements (Scotland) Act 2004. Neither the Leasehold and Freehold Reform Act 2024 nor the draft Commonhold and Leasehold Reform Bill applies in Scotland or Northern Ireland, which has its own leasehold and ground rent law.

Where can I get free advice on my specific lease?

The Leasehold Advisory Service (LEASE) provides free, impartial guidance on leasehold law in England and Wales and is the government-funded body set up for this purpose.