Millions of flat owners are another step closer to fairer home ownership, as desperately needed leasehold and commonhold reforms head to Parliament.
Now the Commonhold and Leasehold Reform Bill has been confirmed in the King’s Speech, plans to overhaul the outdated leasehold system are no longer drafts - they are on their way to becoming real laws.
Soon, the Bill will be introduced to Parliament where MPs will debate and vote on the reforms - the proper procedure for bringing in new laws.
And in further good news for leaseholders, ministers are updating the Bill with a brand‑new right to request a faster broadband connection. This will help flat owners in the more than half a million flats without gigabit connectivity.
Housing Minister Matthew Pennycook said:
“This government made a clear and unambiguous commitment to bring the feudal leasehold system to an end. The Commonhold and Leasehold Reform Bill marks the beginning of the end for the leasehold system that has tainted the dream of homeownership for so many.
“This Bill, previously published in draft, will transform the experience of homeownership for millions of leaseholders across the country, modernise property law and deliver a modern housing market.”
UK Telecoms Minister Liz Lloyd said:
“Fast, reliable broadband should not be a luxury in modern life. We want everyone to be able to get online - whether to apply for jobs, build a business, or stay connected with loved ones.
“These new laws will give leasehold flat owners a legal right to request internet upgrades for their home without being ignored by the freeholder, helping ensure every household can benefit from the services and opportunities available in the digital age.”
What’s the new right to request faster broadband?
For the first time, leaseholders will gain a legal right to request fast, reliable broadband connections - a request that cannot be unreasonably refused.
The new right is intended to be in the Bill as it enters Parliament and is designed to tackle a common frustration for people who own flats across England and Wales.
Many are currently blocked from getting gigabit-capable internet because permission is refused or delayed by the freeholder who owns the building.
That can leave households stuck with slow connections - even when broadband firms are ready to install upgrades.
Ministers say the new law will help end this freeholder veto and give flat owners more power over everyday essentials like the internet.
Ending an outdated system
Leasehold has long been criticised for leaving flat owners with little control over the bills they pay and fewer rights than people who own freehold houses. This is because it's essentially a third-party landlord system.
The Bill aims to give flat owners more control and ownership by:
- making lease extensions and buying your freehold cheaper and easier (by fixing past legislation that doesn’t work)
- simplifying the process of converting your leasehold flat to commonhold (an alternative system that gives full ownership and control)
- making new flats commonhold, so residents jointly own and run their building
Over time, commonhold will become the standard system for new flats - giving owners control over their homes. Once passed and rolled out, ministers say the changes will be transformative, helping flat owners gain control over their homes, their bills - and now, their broadband.
What’s in the reforms?
The new Commonhold and Leasehold Reform Bill will bring:
- protections against unfair ground rent charges (a £250 cap)
- new flats moving to commonhold ownership (meaning you own it outright)
- cheaper and easier routes for existing leaseholders to switch to commonhold
- stronger protections against losing a home over small debts (ending forfeiture)
- a new right for leaseholders to request gigabit‑capable broadband
Through reforms already passed in Parliament, homeowners will see:
- a cheaper and easier process for buying your freehold or extending your lease by 990 years
- more transparent service charges
- stronger protections against excessive estate charges
When will these changes happen?
- £250 cap on ground rents - expected in 2028, before ending ground rents for good.
- The new commonhold model – expected to be available in 2029 (before the end of this parliament) so existing leaseholders and new flat buyers can have full freehold ownership of their homes.
Even sooner:
- Ending forfeiture - ASAP once the Bill gets Royal Assent.
- Cheaper and easier to buy your freehold or extend your lease – changes will be switched on after Royal Assent.
ENDS
Notes to editors:
- See the King’s Speech here and more background on it here.
- See here another easy explainer on the reforms: Own a flat or looking to buy? Here’s what the new leasehold shake-up means for you 💸 – MHCLG in the Media
- Consumers who need help understanding their rights can get free, initial legal advice from the Leasehold Advisory Service (LEASE). LEASE provides advice for leaseholders and park homeowners to help them navigate the complexity of these tenures. See more info here.
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