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.

Leasehold Is an England and Wales Concept

Leasehold, as a form of home ownership where you own the property for a fixed term but not the land it sits on, exists only in England and Wales. Scotland does not have an equivalent system for residential property.

Scotland abolished the feudal system of land tenure entirely under the Abolition of Feudal Tenure etc. (Scotland) Act 2000, removing the superior/vassal structure that leasehold in England and Wales still echoes. 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 (or as a shared owner under a title condition), not on a lease. Everything in this guide about leasehold, ground rent and lease extension applies to England and Wales, not Scotland.

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. Most of this Act's substance is still waiting for the secondary legislation (statutory instruments) needed to switch it on, and only two changes are confirmed live so far.

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 has said it expects to consult on the rates in 2026. 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 has since granted permission to appeal, 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. That committee reported on the draft in spring 2026. As of the date of this article, 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. The government's own stated expectation is formal introduction in autumn 2026, 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.