Commonhold Explained: What the 2026 Reforms Mean for Flat Buyers and Existing Leaseholders

For decades, almost every flat in England and Wales has been sold as leasehold. That is now set to change. In January 2026 the government published its draft Commonhold and Leasehold Reform Bill, setting out plans to make commonhold the standard way of owning a flat and to phase out leasehold for most new buildings. Whether you are buying your first flat, already own a leasehold property, or are simply trying to understand where the market is heading, it is worth knowing what commonhold is and why these reforms matter.

What is commonhold?

Commonhold is a way of owning a flat outright, with no lease and no landlord sitting above you. Instead of holding your home for a fixed number of years, you own it indefinitely, in the same way someone owns a freehold house. The shared parts of the building, such as the hallways, the roof, the lifts and the grounds, are owned and managed collectively by all the flat owners through a commonhold association that they control between them.

This is very different from leasehold. Under a lease, you own the right to live in your flat for a set term, often 99, 125 or 999 years. That term shortens with every passing year, you usually pay ground rent and service charges to a freeholder or managing agent, and the value of your home can fall as the lease gets shorter. Commonhold removes the ticking clock and the third party landlord entirely. If you want a fuller comparison of the two existing options, our guide to freehold versus leasehold ownership explains the practical differences.

Commonhold is not actually new. It was introduced by the Commonhold and Leasehold Reform Act 2002, but the original framework had so many practical flaws that very few developments ever used it. The 2026 reforms are designed to fix those flaws and finally make commonhold workable at scale.

What the 2026 reforms propose

The draft Commonhold and Leasehold Reform Bill, published on 27 January 2026, builds on the Leasehold and Freehold Reform Act 2024 and sets out a clear direction of travel. The headline measures include:

• Banning leasehold for most new flats. Commonhold would become the default tenure for new flats, so that buyers of new build properties own their homes outright rather than on a lease.
• Capping ground rents on existing leases. Ground rents on existing long leases would be capped at £250 a year, reducing to a peppercorn (effectively nothing) after 40 years. Many leaseholders are expected to save several thousand pounds over the life of their lease.
• Abolishing forfeiture. The current system, under which a leaseholder can in theory lose their home over relatively small unpaid debts, would be replaced with a fairer, court led enforcement process.
• Making conversion easier. The reforms aim to lower the threshold for converting an existing leasehold building to commonhold, so that it no longer requires the agreement of every single leaseholder.

It is important to be realistic about timing. The draft bill went through a period of consultation and pre-legislative scrutiny in early 2026, and a full bill is expected to progress through Parliament over the coming period, with many measures phased in through later regulations. In other words, the reforms are coming, but they will not all take effect overnight. The decisions you make about buying or managing a flat today still need to be made under the rules as they currently stand.

What it means if you are buying a flat now

For the time being, the overwhelming majority of flats on the market are still leasehold, and commonhold is not yet widely available. That means the usual checks remain essential. Before you commit, you should understand the length of the lease, the level of ground rent and service charges, and any restrictions in the lease that might affect how you live in or let out your home. A short lease in particular can be expensive to extend and can make a property harder to mortgage or sell. Our guide to buying a leasehold flat sets out the key checks in more detail.

The reforms do not change the importance of getting this right. If anything, they make it more important to take proper advice, because the gap between an old style lease and the ownership model the government is moving towards is now very visible to buyers.

What it means if you already own a leasehold flat

If you already own a leasehold flat, the most immediate change to watch is the proposed ground rent cap, which could reduce what you pay and remove a charge that has long frustrated leaseholders. The abolition of forfeiture also offers reassurance to anyone who has worried about the disproportionate consequences of a dispute over service charges.

Conversion to commonhold may become a realistic option in future, but it will still be voluntary and will depend on cooperation with your fellow leaseholders. For most owners, the sensible approach is to keep your lease in good order now, stay informed about the reforms, and take advice before making any major decision such as extending your lease or buying the freehold.

How a conveyancing solicitor can help

This is an area where expert advice genuinely pays for itself. At Gorvins Residential, our residential conveyancing team works with flat buyers and leaseholders across Stockport, Manchester and the wider North West every day. We review leases carefully, explain ground rent and service charge obligations in plain English, and flag the issues that could affect your purchase, your mortgage or your future sale. You can read more about what a conveyancing solicitor does for the buyer here.

As the move towards commonhold develops, having a solicitor who understands both the current law and the direction of reform is a real advantage. Whether you are buying a leasehold flat, considering a lease extension, or simply want to understand how these changes might affect a property you already own, we can give you clear, practical guidance tailored to your situation.

If you are buying, selling or remortgaging a flat and want advice you can rely on, get in touch with Gorvins Residential. We will help you understand exactly what you are taking on and make sure your interests are protected at every stage.