THE PROPERTY FILTER TAKE
The King's Speech on 13 May 2026 introduced two housing bills: the Leasehold and Commonhold Reform Bill and the Building Safety Remediation Bill.
Leaseholders face a ground rent cap of £250 per year on existing leases, forfeiture is to be abolished, and new flats will default to commonhold. Freeholders and responsible persons will face a legal duty to remediate unsafe cladding, with criminal sanctions for non-compliance.
With parliamentary timelines still TBC, you may wish to review your lease now - particularly any ground rent clause above £250 per year - and factor remediation status into any leasehold purchase decision.
On 13 May 2026, King Charles delivered the State Opening of Parliament and outlined the government's legislative programme for the new session. Two bills will directly affect leaseholders, landlords, and flat owners in England and Wales: the Leasehold and Commonhold Reform Bill and the Building Safety Remediation Bill. Both have now been introduced to Parliament. Commencement dates are yet to be confirmed, but the direction of travel is clear - and you may wish to act before the final deadlines are set.
What does the Leasehold and Commonhold Reform Bill change?
The bill targets the leasehold system. Leasehold means owning a property for a fixed term - typically decades or centuries - while the freeholder retains the land and can charge ongoing ground rent and service costs. For millions of flat owners in England and Wales, that has meant ground rents, service charge disputes, and restricted rights to sell or remortgage.
The headline measure is a ground rent cap of £250 per year on existing long residential leases. This applies for a 40-year transition period, after which ground rent falls to a peppercorn (effectively zero). The government's aim is to address the onerous escalating ground rent clauses that have made some leasehold properties difficult to sell or finance. If you own a leasehold flat with an annual ground rent above £250, you may wish to check your lease and seek legal advice on how the cap will apply.
The bill also abolishes forfeiture - the mechanism that currently allows a freeholder to terminate a lease if a leaseholder breaches their obligations. Under the new regime, courts will determine proportionate remedies case by case. This is a significant protection for leaseholders who have historically faced the loss of their entire property over relatively minor disputes.
Looking further ahead, the bill makes commonhold - a form of flat ownership where residents collectively own the building freehold through a commonhold association - the default tenure for new residential flats in England and Wales. Existing leaseholders are not automatically converted. The government ran a consultation on the transition, which closed on 24 April 2026. Its response, and the final version of the bill, is expected before Parliament rises for the summer.
The bill also continues the work of the Leasehold and Freehold Reform Act 2024, implementing its remaining provisions. You can use the Property Filter lease extension calculator to assess the current value of extending your lease before the new regime takes effect.
What does the Building Safety Remediation Bill require?
Since the Grenfell Tower fire of 2017, identifying and fixing unsafe cladding on residential buildings has been slow and contested. The Building Safety Remediation Bill is intended to change that.
The bill introduces a legal duty on responsible persons - typically freeholders - to identify, assess, and remediate fire safety defects in their buildings. The government has set clear target deadlines: buildings over 18 metres are expected to be remediated by end of 2029; buildings between 11 and 18 metres by end of 2031. These deadlines are stated in the government's Remediation Acceleration Plan, confirmed alongside the King's Speech on 13 May 2026 (Travers Smith, May 2026).
The penalty for non-compliance is serious. Responsible persons who fail to meet the duty face criminal sanctions, including fines and, in some cases, imprisonment. The bill also requires construction product manufacturers to contribute financially to remediation costs - shifting some of the burden away from leaseholders.
For buyers considering a leasehold flat in a building between 11 and 18 metres, you may wish to check the current remediation status via the government's building safety fund register. For existing leaseholders in affected buildings, the new enforcement powers may accelerate action from your freeholder.
Who is affected and what can you do now?
The bills apply in England and Wales. Scotland has its own tenements and property law framework and is not covered by this legislation.
The deadline for both bills receiving Royal Assent is TBC - they are at the parliamentary scrutiny stage as of June 2026. However, the compliance obligations are coming. The practical steps worth considering now:
Review your lease. If your ground rent exceeds £250 per year, consider whether the incoming cap affects your purchase price assumptions or resale value. Our free resources hub includes guidance on leasehold terms to check.
Factor remediation status into any purchase of a flat in a building over 11 metres. Ask your solicitor to confirm whether the building is in scope under the Building Safety Act 2022 and whether remediation has started.
If you are a landlord holding leasehold buy-to-let properties, consider running a stress test on the impact of potential service charge increases as freeholders pass on remediation costs.
Investors acquiring new-build flats should review property investment strategies in the context of the shift to commonhold - purchase structures, management obligations, and exit routes differ meaningfully under commonhold compared to leasehold.
Key takeaways
The King's Speech on 13 May 2026 confirmed two housing reform bills for this parliamentary session.
Ground rents on existing long residential leases will be capped at £250 per year for 40 years, then fall to peppercorn.
Forfeiture of long residential leases will be abolished and replaced with court-determined remedies.
Commonhold becomes the default tenure for new flats in England and Wales - timeline for commencement TBC.
Buildings over 18 metres must be remediated by end of 2029; buildings between 11-18 metres by end of 2031.
Non-compliance with the remediation duty carries criminal sanctions including fines and imprisonment.
On 13 May 2026, King Charles delivered the State Opening of Parliament and outlined the government's legislative programme for the new session. Two bills will directly affect leaseholders, landlords, and flat owners in England and Wales: the Leasehold and Commonhold Reform Bill and the Building Safety Remediation Bill. Both have now been introduced to Parliament. Commencement dates are yet to be confirmed, but the direction of travel is clear - and you may wish to act before the final deadlines are set.
What does the Leasehold and Commonhold Reform Bill change?
The bill targets the leasehold system. Leasehold means owning a property for a fixed term - typically decades or centuries - while the freeholder retains the land and can charge ongoing ground rent and service costs. For millions of flat owners in England and Wales, that has meant ground rents, service charge disputes, and restricted rights to sell or remortgage.
The headline measure is a ground rent cap of £250 per year on existing long residential leases. This applies for a 40-year transition period, after which ground rent falls to a peppercorn (effectively zero). The government's aim is to address the onerous escalating ground rent clauses that have made some leasehold properties difficult to sell or finance. If you own a leasehold flat with an annual ground rent above £250, you may wish to check your lease and seek legal advice on how the cap will apply.
The bill also abolishes forfeiture - the mechanism that currently allows a freeholder to terminate a lease if a leaseholder breaches their obligations. Under the new regime, courts will determine proportionate remedies case by case. This is a significant protection for leaseholders who have historically faced the loss of their entire property over relatively minor disputes.
Looking further ahead, the bill makes commonhold - a form of flat ownership where residents collectively own the building freehold through a commonhold association - the default tenure for new residential flats in England and Wales. Existing leaseholders are not automatically converted. The government ran a consultation on the transition, which closed on 24 April 2026. Its response, and the final version of the bill, is expected before Parliament rises for the summer.
The bill also continues the work of the Leasehold and Freehold Reform Act 2024, implementing its remaining provisions. You can use the Property Filter lease extension calculator to assess the current value of extending your lease before the new regime takes effect.
What does the Building Safety Remediation Bill require?
Since the Grenfell Tower fire of 2017, identifying and fixing unsafe cladding on residential buildings has been slow and contested. The Building Safety Remediation Bill is intended to change that.
The bill introduces a legal duty on responsible persons - typically freeholders - to identify, assess, and remediate fire safety defects in their buildings. The government has set clear target deadlines: buildings over 18 metres are expected to be remediated by end of 2029; buildings between 11 and 18 metres by end of 2031. These deadlines are stated in the government's Remediation Acceleration Plan, confirmed alongside the King's Speech on 13 May 2026 (Travers Smith, May 2026).
The penalty for non-compliance is serious. Responsible persons who fail to meet the duty face criminal sanctions, including fines and, in some cases, imprisonment. The bill also requires construction product manufacturers to contribute financially to remediation costs - shifting some of the burden away from leaseholders.
For buyers considering a leasehold flat in a building between 11 and 18 metres, you may wish to check the current remediation status via the government's building safety fund register. For existing leaseholders in affected buildings, the new enforcement powers may accelerate action from your freeholder.
Who is affected and what can you do now?
The bills apply in England and Wales. Scotland has its own tenements and property law framework and is not covered by this legislation.
The deadline for both bills receiving Royal Assent is TBC - they are at the parliamentary scrutiny stage as of June 2026. However, the compliance obligations are coming. The practical steps worth considering now:
Review your lease. If your ground rent exceeds £250 per year, consider whether the incoming cap affects your purchase price assumptions or resale value. Our free resources hub includes guidance on leasehold terms to check.
Factor remediation status into any purchase of a flat in a building over 11 metres. Ask your solicitor to confirm whether the building is in scope under the Building Safety Act 2022 and whether remediation has started.
If you are a landlord holding leasehold buy-to-let properties, consider running a stress test on the impact of potential service charge increases as freeholders pass on remediation costs.
Investors acquiring new-build flats should review property investment strategies in the context of the shift to commonhold - purchase structures, management obligations, and exit routes differ meaningfully under commonhold compared to leasehold.
Key takeaways
The King's Speech on 13 May 2026 confirmed two housing reform bills for this parliamentary session.
Ground rents on existing long residential leases will be capped at £250 per year for 40 years, then fall to peppercorn.
Forfeiture of long residential leases will be abolished and replaced with court-determined remedies.
Commonhold becomes the default tenure for new flats in England and Wales - timeline for commencement TBC.
Buildings over 18 metres must be remediated by end of 2029; buildings between 11-18 metres by end of 2031.
Non-compliance with the remediation duty carries criminal sanctions including fines and imprisonment.
Frequently asked questions
Frequently asked questions
Does the ground rent cap apply to my existing lease?
Yes, under the Leasehold and Commonhold Reform Bill the £250 per year cap is intended to apply to existing long residential leases. The 40-year transition period then brings ground rent to peppercorn. The commencement date is TBC.
Will my leasehold flat automatically become commonhold?
No. The bill makes commonhold the default for new flats only. Existing leaseholders are not automatically converted. Voluntary conversion routes may be consulted on separately.
What is a responsible person under the Building Safety Remediation Bill?
In most cases this is the freeholder of the building. They will have a legal duty to identify, assess, and remediate fire safety defects, and face criminal penalties for failure to comply.
Can construction product manufacturers be made to pay for cladding remediation?
Yes. The Building Safety Remediation Bill includes a provision requiring relevant construction product manufacturers to contribute to remediation costs where their products caused or contributed to the defect.
