Is leasehold being abolished, and will ground rent be capped?

In England and Wales, leasehold reform is moving in stages: some 2024 Act changes are in force, but the big changes on ground rent, commonhold, marriage value and most new flats still need further legislation or commencement. Scotland and Northern Ireland are different systems, so UK-wide answers are usually wrong.

Is leasehold being abolished?

In Scotland, qualifying ultra-long leases already converted to ownership on 28 November 2015; in England and Wales, existing leaseholds are not being abolished, and the January 2026 draft Commonhold and Leasehold Reform Bill expressly leaves existing leasehold flats untouched. The Scottish position is not a future leasehold reform promise: the Long Leases (Scotland) Act 2012 says a qualifying lease becomes ownership, and the appointed day was 28 November 2015. In England, leasehold remains a large live tenure, with 4.83 million leasehold dwellings in 2023–24, so the answer to whether existing leaseholds will be abolished is no under law now. The government’s new law regarding leasehold is aimed at reducing and replacing future leasehold use, especially by making commonhold workable, but commonhold has barely been used so far: government impact material says fewer than 20 commonhold blocks have been created. Northern Ireland has separate ground-rent redemption and long-lease rules rather than abolition of leasehold flats.

Has ground rent been capped or abolished for existing leases?

Ground rent has not been capped or abolished for existing leases in England and Wales: new regulated leases are limited to a peppercorn by the Leasehold Reform (Ground Rent) Act 2022, but older ground rents still exist and the proposed £250 cap is not yet law. The 2022 Act applies only where the lease is granted on or after its commencement day, and for those new regulated leases the permitted rent is a peppercorn; it does not retrospectively cap older leases. The government’s own 2026 policy statement says new ground rents have already been abolished but ground rents in older leases still exist, and estimates leaseholders paid over £600 million in ground rent last year. The proposed ground rent cap for existing leases is a future measure: the Prime Minister’s announcement says it could come into force in late 2028, subject to parliamentary timing. Northern Ireland lets a rent-payer redeem ground rent, but that statutory redemption power excludes flats. For a landlord holding a leasehold buy-to-let, Abodient can log the ground rent as a recurring property expense against the lease, so it's captured in the income and expense records even while the amount itself stays uncapped for now.

Are new leasehold flats being banned?

New leasehold flats are not yet banned in England and Wales: the ban on using leasehold for most new flats is a proposal in the draft Commonhold and Leasehold Reform Bill, not a rule currently in force. The Leasehold and Freehold Reform Act 2024 contains a ban on granting new long residential leases of houses once the relevant section is commenced, but the text is about houses, not flats, and commencement still depends on regulations. The government’s consultation describes a proposed ban on leasehold for new flats so that reformed commonhold can become the default tenure, and the draft Bill’s notes say nearly all new flats for sale are still sold on a leasehold basis. Northern Ireland has barred new long leases of dwelling-houses over 50 years since 1997, but the statutory list preserves the grant of a long lease of a flat, so that is not a flat ban either.

When will commonhold replace leasehold?

Commonhold has no fixed date to replace leasehold in England and Wales, and existing leaseholders are expected to get an easier route to switch only if the new Commonhold and Leasehold Reform Bill is passed and implemented. The government has published a draft Bill to reinvigorate commonhold, make it easier for existing leaseholders to convert to commonhold if they wish, and ban leasehold for most new flats, but that draft is not law. The practical issue is not just the date commonhold comes into effect; it is market adoption. Government impact material says fewer than 20 commonhold blocks have been created, which is why ministers are trying to make commonhold the default for new flats rather than relying on voluntary take-up. Existing leaseholders will not automatically become commonholders under the draft approach: the government describes making conversion easier should they wish to do so, not compulsory conversion of existing blocks.

Has marriage value been abolished?

Marriage value has been abolished in the text of the Leasehold and Freehold Reform Act 2024, but that premium reform is not yet in force for leaseholders in England and Wales, so current lease-extension pricing cannot be treated as if marriage value has already disappeared. The 2024 Act’s Schedule 4 says that no marriage or hope value is payable, but the commencement provisions mean the major enfranchisement valuation changes still need to be switched on. That is why leasehold reform latest news on marriage value is easy to misread: Royal Assent has happened, but implementation has not. The government said in July 2026 that the 2024 Act’s enfranchisement measures have been constrained by specific flaws in the legislation, and LEASE says planned changes to lease extension, buying the freehold and buying out ground rent cannot be made until after the Commonhold and Leasehold Reform Bill is passed. Until then, marriage value abolition is enacted but not usable.

What did the Leasehold and Freehold Reform Act 2024 actually change?

The Leasehold and Freehold Reform Act 2024 changed the statute book for England and Wales, but only a limited set of its leasehold reforms are actually in force: the two-year ownership wait was removed from 31 January 2025, the right-to-manage non-residential cap rose from 25% to 50%, and most headline valuation and lease-extension changes still await commencement. The Act extends to England and Wales only, except section 23(5), which also extends to Scotland and Northern Ireland. On paper, the Act bans new long residential leases of houses once that section comes into force, substitutes 990 years for the 90-year statutory flat lease extension, and removes marriage or hope value from the premium calculation. In practical terms, landlords who own leasehold flats should not assume the 990-year extension, marriage-value abolition or new valuation basis is already available, because those changes depend on commencement and, for some parts, correction through the next Bill.

When will the Leasehold and Freehold Reform Act 2024 be implemented?

There is no single implementation date for the Leasehold and Freehold Reform Act 2024, and the government said on 15 July 2026 that the headline enfranchisement measures are stalled because the Act contains specific drafting flaws to be corrected in the next Bill. This is not just ordinary delay: the ministerial statement says implementation has been constrained by flaws in the legislation. The Act itself says its other provisions come into force on days appointed by regulations, so different parts start at different times. Some narrower measures did commence: building-safety sections 114–116 came into force on 31 October 2024, the two-year qualifying period removal came into force on 31 January 2025, and the right-to-manage 50% non-residential cap is in force. For the wider service-charge package, the Commons Library states secondary legislation will be laid in 2026 with reforms implemented as soon as possible from 2027, while LEASE says the government has not confirmed a date for full implementation.

When is the new Leasehold and Commonhold Reform Bill expected?

The new Commonhold and Leasehold Reform Bill has no legally fixed introduction, Royal Assent or implementation date, although the King’s Speech 2026 announced legislation to reform leasehold and cap ground rents, and government briefing says the Bill will extend and apply to England and Wales. The January 2026 draft Bill is the clearest statement of direction: it is intended to reform commonhold, make it easier for existing leaseholders to convert to commonhold if they choose, and ban leasehold for most new flats. A parliamentary committee chair urged the government to introduce the final Bill in autumn 2026, but that is political pressure, not a deadline. Macfarlanes reported the Housing Minister as saying the precise date would be a decision for the new administration. That makes 2026 the expected Bill period in political terms, but not a guaranteed commencement date; implementation of ground-rent caps, commonhold conversion and marriage-value reform will depend on the final Act and regulations.

Last reviewed August 2026.

Sources

• Long Leases (Scotland) Act 2012 s.4 — “(a)a qualifying lease becomes the right of ownership of the land in relation to which it is the qualifying lease,” Source
• Long Leases (Scotland) Act 2012 (Appointed Day) Order 2013 explanatory note — “In accordance with section 70 of the Act, “the appointed day” for the purposes of the Act will be 28th November 2015.” Source
• Draft Commonhold and Leasehold Reform Bill explanatory notes — “The ban applies only to new long residential leases granted after the ban comes into force; existing leasehold flats and their leaseholders are unaffected.” Source
• Leasehold dwellings, 2023 to 2024 — “In 2023-24, there were an estimated 4.83 million leasehold dwellings in England.” Source
• Draft Commonhold and Leasehold Reform Bill impact assessment — “Fewer than 20 commonhold blocks have been created, despite international experience indicating that commonhold-type models can underpin effective flat ownership.” Source
• Leasehold Reform (Ground Rent) Act 2022 s.1 — “(c)it is granted on or after the relevant commencement day, otherwise than in pursuance of a contract made before that day, and” Source
• Leasehold Reform (Ground Rent) Act 2022 s.4 — “The permitted rent is a peppercorn rent.” Source
• Leasehold Reform (Ground Rent) Act 2022 s.24 — “This Act extends to England and Wales.” Source
• Policy statement on ground rents — “New ground rents have already been abolished by the GRA 2022, but ground rents in older leases still exist.” Source
• Policy statement on ground rents — “In total, last year alone we estimate that leaseholders paid over £600m in ground rents.” Source
• GOV.UK ground rent cap announcement — “Subject to parliamentary timings, the ground rent cap could come into force in late 2028.” Source
• Ground Rents Act (Northern Ireland) 2001 s.1 — “Subject to subsection (2) and section 3, a rent-payer may, by complying with the requirements of this Act, redeem the ground rent to which his land is subject.” Source
• Ground Rents Act (Northern Ireland) 2001 s.3 — “Sections 1 and 2 do not apply to a flat, that is to say, a unit of accommodation in a development containing two or more such units, where—” Source
• Leasehold and Freehold Reform Act 2024 s.1 — “A person may not grant or enter into an agreement to grant a long residential lease of a house on or after the day on which this section comes into force, unless it is a permitted lease (see section 7).” Source
• Leasehold and Freehold Reform Act 2024 s.124 — “The other provisions of this Act come into force on such day or days as the Secretary of State may by regulations appoint.” Source
• Moving to commonhold: banning leasehold for new flats — “This consultation sets out the government’s proposed approach to introducing a ban on the use of leasehold for new flats so that the reformed commonhold model can be the default tenure for new flats.” Source
• Draft Commonhold and Leasehold Reform Bill explanatory notes — “Today, nearly all new flats for sale are sold on a leasehold basis.” Source
• Property (Northern Ireland) Order 1997 art.30 — “Without prejudice to Article 36(1)(c) and (2) or Article 37(3), and subject to paragraph (5), on and after the appointed day a lease of a dwelling-house for a term of more than 50 years ( “a long lease”) is incapable of being created at law or in equity.” Source
• Property (Northern Ireland) Order 1997 art.30 — “(e)the grant of a long lease of a flat;” Source
• Draft Commonhold and Leasehold Reform Bill publication page — “The government has published a draft Bill which, when implemented, will deliver its manifesto and King’s Speech commitments to reinvigorate and reform the commonhold model, making it easier for existing leaseholders to convert to commonhold should they wish to do so, and banning the use of leasehold for most new flats.” Source
• Leasehold and Freehold Reform Act 2024 Sch.4 para.17 — “Accordingly, no marriage or hope value is payable.” Source
• Written ministerial statement, 15 July 2026 — “We have been constrained from implementing the 2024 Act’s enfranchisement measures to date by the fact that legislation contains a small number of specific flaws.” Source
• LEASE leasehold reforms page — “The government has said that the planned changes to lease extension, buying the freehold and buying out ground rent cannot be made until after the Commonhold and Leasehold Reform Bill is passed.” Source
• Leasehold and Freehold Reform Act 2024 s.123 — “This Act extends to England and Wales only, subject to subsection (2).” Source
• Leasehold and Freehold Reform Act 2024 s.123 — “Section 23(5) extends to England and Wales, Scotland and Northern Ireland.” Source
• Leasehold and Freehold Reform Act 2024 s.33 — “In section 56(1) of the LRHUDA 1993 (obligation to grant new lease), in the words after paragraph (b), for “90 years” substitute “990 years”.” Source
• Leasehold and Freehold Reform Act 2024 (Commencement No. 2 and Transitional Provision) Regulations 2025 — “Section 27 of the Leasehold and Freehold Reform Act 2024 (removal of qualifying period before enfranchisement and extension claims) comes into force on 31st January 2025.” Source
• Leasehold and Freehold Reform Act 2024 s.49 — “In Schedule 6 to the Commonhold and Leasehold Reform Act 2002 (“the CLRA 2002”), in paragraph 1(1) (non-residential limit on right to manage claims), for “25 per cent.” substitute “50%”.” Source
• Leasehold and Freehold Reform Act 2024 (Commencement No. 1) Regulations 2024 — “The following provisions of the Leasehold and Freehold Reform Act 2024 come into force on 31st October 2024—” Source
• House of Commons Library briefing CBP-10653 — “Secondary legislation will be laid in Parliament in 2026, with the reforms being implemented as soon as possible from 2027.” Source
• LEASE leasehold reforms page — “The government has not confirmed a date for when all the reforms will be fully implemented.” Source
• King’s Speech 2026 — “My Ministers will bring forward legislation to increase long-term investment in social housing [Social Housing Renewal Bill] and to reform the leasehold system, including the capping of ground rents [Commonhold and Leasehold Reform Bill].” Source
• King’s Speech 2026 background briefing notes — “The Bill will extend and apply to England and Wales.” Source
• Housing, Communities and Local Government Committee statement — “I urge the government to introduce the final bill in autumn 2026 so this will be the Parliament which finally tackles the longstanding inequities of leasehold.” Source
• Macfarlanes leasehold reform update — “The Housing Minister expressed his "sincere hope" that a substantive response will be provided soon after the House returns from the summer recess, with a substantive Bill introduced to Parliament soon after, but acknowledged that the precise date will be "a decision for the new administration".” Source