The end of leasehold is coming. Here's what changes.

The Leasehold and Freehold Reform Act 2024 (Commencement No. 4 and Saving Provision) (England) Regulations 2026 were made on 25 October 2026 and signed by Housing Minister Matthew Pennycook. They set four dates:

• 6 November 2026: ministers can make the detailed regulations: prescribed forms, information lists, insurance rules and litigation cost rules. Nothing changes for leaseholders yet.
• 1 April 2027: fixed service charges brought into the regime; a prescribed future demand notice replaces the section 20B notice; a new right to information on request, enforced at the tribunal with damages up to £5,000; and a reversed default on litigation costs, plus a new right for leaseholders to claim their own costs, for proceedings issued on or after this date.
• 1 November 2027: prescribed service charge demands, standard accounts with an accountant's report, and annual building reports for private landlords, including RTM companies and RMCs. A non-compliant demand means the lease's late payment provisions don't apply. Insurance commission limits, insurance disclosure and published administration charge schedules start for all landlords.
• 1 November 2028: demands, accounts and annual reports for social landlords, meaning housing associations, councils and "joint venture" landlords whose buildings they manage.

The saving provision keeps proceedings issued before 1 April 2027 on the old litigation costs rules. The dates match the 12 and 24 months' notice promised in July. The forms themselves still have to be made in at least five further regulations. England only. Sections 65 to 67, including leasehold sales information requests, are still not commenced.

SI 2026/1128 on legislation.gov.uk → · Every date, decoded → · July 2026 government response →

The consultation closed at 11:59pm on 21 October 2026. Paragraph 14 of the consultation document says the deferment and capitalisation rates exist "to calculate the present value of future receipts", and that "it is not intended to use prescribed rates in and of themselves, as a means of further reducing premiums for leaseholders". The same sentence continues: "or to provide compensation to freeholders for the loss of income through other reforms to the valuation process". The government says it wants rates that are simple, certain and stable, and that pay freeholders "sufficient compensation" for their legitimate property interests.

The wording is a shift from Labour's position in opposition. In January 2024, as shadow minister, Matthew Pennycook told the Bill committee that the "chief" consideration when setting the rate "must be reducing premiums for leaseholders to their lowest possible level". The Times reports that campaigners now accuse Labour of retreating from that pledge. The 2024 Act's main savings come from scrapping marriage value, capping ground rent at 0.1% of the freehold value in the price calculation, and making each side pay its own costs. These are untouched. The rates are where the money is still to play for. A lower deferment rate means a higher price, so the final figures could cancel out part of those savings for some leases. The rates could stay in place for up to 10 years.

What next: the government will analyse responses before setting the rates in regulations. The new valuation method can't start until the Commonhold and Leasehold Reform Bill fixes flaws in the 2024 Act.

Consultation document, para 14 → · Hansard, 23 Jan 2024 → · The Times → · Leasehold Knowledge Partnership → · Our enfranchisement explainer →

Andy Burnham pledged to introduce a Bill before Christmas for "long overdue" leasehold reform, telling leaseholders that "the days of you being squeezed for every penny are coming to an end". This firms up the "autumn 2026" window and follows his 1 September PMQs commitment to bring the Bill forward this session. The formal title and exact date have not been confirmed. Campaigners welcomed the pledge but warned they will judge it on delivery: the National Leasehold Campaign said leaseholders "are entitled to be sceptical" after years of delay.

Full speech (Labour) → · Key points (The Independent) → · Campaigner reaction →

The government will legislate to give the Secretary of State powers to cap permission fees (for example, to keep a pet or make minor cosmetic changes) and administration fees (for example, supplying building safety certificates or being told about a change of mortgage lender). The powers will also cover privately managed freehold estates. A public consultation will set the scope and the amount for each item.

Separately, for the first time, property agents, including estate agents, managing agents and estate managers, will be independently regulated. A regulator will set codes of practice on conduct and complaint handling, agents will need a licence and appropriate qualifications, and licences can be revoked. No timetable yet: the government says it will act "as soon as possible". The BBC reports the £250 ground rent cap is still expected to take effect in late 2028.

MHCLG announcement → · BBC News → · Reuters → · Service charge reforms, decoded →

Covers the limited exceptions where leaseholders must still contribute to a landlord's legal and valuation costs in an enfranchisement claim, and how much they can be charged.

Process costs consultation →

Sets the deferment and capitalisation rates that will fix the price of statutory lease extensions, freehold purchases and ground rent buy-outs under the new Standard Valuation Method. Once prescribed, the rates cannot vary by region or by type of leaseholder or freeholder, allow no case-by-case departures, and could stay in use for up to 10 years. For deferment, the options are keeping the 2007 Sportelli rates (4.75% houses, 5% flats), updating them with newer evidence, or a new method. For capitalisation, one rate for all ground rents or separate rates by rent type. A higher rate generally means a lower premium for the leaseholder.

Consultation page → · Our enfranchisement explainer → · LEASE explainer →

In 295 Anlaby Road, Hull (MAN/00FA/LCP/2025/0001, determined 15 July 2026) the First-tier Tribunal held an RTM company liable for the landlord's reasonable costs under section 88 of the 2002 Act across three claim notices, including two that were invalid.

Decision on gov.uk →

Pressed by Barry Gardiner MP, the Prime Minister committed to bringing the Commonhold and Leasehold Reform Bill forward in this session and to reforming an "unfair" leasehold system affecting an estimated five million households.

ITV News → · The Guardian →

Failure to give a notice of invitation to participate does not invalidate a claim notice, and non-compliance with sections 78 and 79 cannot be raised in a landlord's counter-notice. The remedy is a discretionary enforcement order under section 107.

Our analysis → · Full judgment →

Asked whether leases where a higher ground rent was specifically agreed in return for a lower premium should be exempt from the £250 cap. Ministers say they are not considering a broad exemption; freeholder groups are pressing for a far wider carve-out.

Our analysis → · Consultation document →

One on the deferment and capitalisation rates used to price lease extensions, freehold purchases and ground rent buy-outs; the other on when leaseholders must still contribute to a landlord's costs. The valuation rates consultation was later extended to 21 October 2026.

Valuation rates → · Process costs →

Confirms how Part 4 of the Leasehold and Freehold Reform Act 2024 will work: standardised service charge demands, a prescribed annual building report, six-year information rights, insurance and administration charge disclosure, and a reversal of the litigation-costs default. 12 months' notice for private landlords, 24 for social landlords. England only, and none of it is law until at least five statutory instruments are laid.

Our analysis → · Government response → · MHCLG announcement → · Howes Percival →

The PM's resignation on 22 June 2026 pushed the formal response to the HCLG Committee's scrutiny report past its 27 July deadline.

Macfarlanes analysis →

Asked whether leases where a higher ground rent was specifically agreed in return for a lower premium should be exempt from the cap. It closed at 11:59pm on 27 August 2026.

Our analysis →

Legal and property commentators project Royal Assent by mid-2027, later than earlier estimates and in line with the Committee's own recommended timetable. The delayed Government Response since then adds further pressure on that timetable.

Charles Russell Speechlys → · Macfarlanes →

The Committee also recommended that the ground rent cap start automatically two months after Royal Assent, and urged ministers to bring its start forward to late 2027.

Inquiry tracker → · Ground rent cap explainer →

The landowners, including Cadogan and Grosvenor, argue the enfranchisement reforms breach their property rights under the European Convention on Human Rights. The appeal must be heard by 23 April 2027; no hearing date is fixed. The government says it will robustly defend it.

The Negotiator → · Leasehold Knowledge Partnership →

Also lowers the threshold for converting a building to commonhold to 50% of qualifying leaseholders.

GOV.UK →

R (ARC Time Freehold Income Authorised Fund & Ors) v Secretary of State [2025] EWHC 2751 (Admin) found the measures compatible with property rights under the Convention.

Leasehold Knowledge Partnership →

Commencement No. 3 Regulations (SI 2025/131) brought sections 49 to 52 of the 2024 Act into force, including tribunal-first RTM disputes.

What is in force →

The starting point for the Commonhold and Leasehold Reform Bill.

Read on gov.uk →

Section 27 of the 2024 Act, commenced by SI 2025/57.

SI 2025/57 → · Enfranchisement explainer →