On Tuesdsay 27 January 2026, the government published a draft of the Leasehold and Commonhold Reform Bill, setting out proposals to introduce a ban on the sale of new leasehold flats and cap ground rents at £250 for leaseholders. 

The proposed changes would not take effect until 2028, and will now be scrutinised by the Housing Committee before making its way through Parliament.

We spoke to some of our experts to get their reaction. 

James Menzies, Real Estate Senior Associate, said:

"Switching to an entirely new form of tenure for residential flats will require us all to get familiar will the detail. In turn, this will result in numerous requests for clarity and likely amendments to the Bill from the house building sector in particular. 

"Those managing leasehold property may have plenty to say about the proposals to remove the threat of forfeiture - which still remains a useful tool in the armoury of landlords with troublesome lessees.

"Those considering a conversion from leasehold or purchasing a commonhold interest (to replace a leasehold interest) - as well as the affected landlords - will be keen to understand how the valuation process will operate.

"The Bill allows for scrutiny and consultation before the formal introduction of draft legislation to Parliament and we can expect plenty of reaction from the sector."

Caryn Beidas, Real Estate Partner, said: 

"If introduced, the reforms will cause a period of uncertainty for developers, funders and purchasers. The reforms would also no doubt cause concern for institutional investors who will fear losing their ground rents and freehold interests if sites are converted into commonhold interests.

"If commonhold is introduced in a short timeframe this could also destabilise the housing market especially as large developments require substantial planning, financing and a comprehensive sales strategy.

"Developers will welcome any property reforms that improve purchaser and funder confidence in the market. A well-considered commonhold system could work very well in small residential developments, but it remains to be seen whether it will work and improve consumer confidence in larger residential and mixed-use schemes.

"We wait to see if the Government will provide a workable framework which is acceptable to developers, funders and purchasers."

Residential Property Partner Chris Brierley added: 

“I’m not convinced about the end of leasehold flat sales. A change of that scale will cause massive disruption, and I’m not sure that it would be worth it. I feel it would be better to tackle service charges rather than the whole structure of ownership, as this is often more commonly the problem. But let’s see.”

Want to chat to one of our experts? Contact pr@knightsplc.com.