Draft Commonhold and Leasehold Reform Bill
ALEP (the Association of Leasehold Enfranchisement Practitioners) has welcomed the publication of the Draft Commonhold and Leasehold Reform Bill, describing it as an important step in the government’s long stated aim to modernise tenure structures in England and Wales.
The draft Bill, published as a policy paper, sets out 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 from a future date. The Bill also caps ground rents at £250 a year and repeals the enforcement powers that apply to estate rent charges on freehold estates. A consultation on commonhold runs until 24 April 2026.
Mark Chick, ALEP director and Senior Partner at Bishop & Sewell LLP, said: “This draft legislation is long-awaited, both by the industry and by the 5 million plus leaseholders in England and Wales. Reforming tenure structures may not attract the same attention as meeting housebuilding targets, but it remains a cornerstone of housing delivery. The structure of ownership underpins how communities are managed, maintained and held to account and reform was long-overdue.
“ALEP has consistently supported the government’s intention to reform leasehold. Its position is that reform must be workable, evidence-based and developed in partnership with the professionals who will be responsible for implementing it.
“We welcome the consultation on commonhold. If commonhold is to succeed as a viable alternative to leasehold, its introduction must be practical, transparent and legally robust and this will require input from the wide range of professionals involved.
“There is clear political and public pressure to accelerate change, but reforms of this magnitude must balance speed with care. Rushed legislation rarely delivers clarity or certainty. The experience of implementing Leasehold and Freehold Reform Act (LAFRA) shows how important it is to get the detail right.
“Similar comments apply to the proposed cap and eventual sunset on ground rents which will potentially be susceptible to Human Rights Act challenges, although the government has been at pains to set out its approach in a policy statement for this very reason.”
ALEP, which comprises specialist solicitors, valuers and managing agents, calls on the MHCLG to draw on the expertise of its membership during the consultation and beyond. ALEP would welcome the revival of the Commonhold Council or a similar advisory body to ensure that practical experience informs the drafting of both primary and secondary legislation.
ALEP also notes that while commonhold for new developments may be relatively straightforward, retrofitting commonhold across the existing stock presents far greater challenges. With more than five million leasehold homes in England and Wales, any broad-based conversion programme would need to be phased, well-resourced and carefully explained to consumers.
Training is also a concern. At present, only a very small number of practitioners have hands-on experience of commonhold. ALEP estimates that introducing commonhold at scale would require several days of structured training per practitioner, amounting to many hundreds of hours across the profession. Without proper planning and support, including from bodies such as LEASE, the sector risks a capacity gap at the very moment when leaseholders most need clarity.
In conclusion, Mark Chick said, “This Draft Bill represents the most substantial shift in land tenure for more than two centuries. ALEP and its members are ready to contribute to the development of a system that delivers genuine long term benefits for leaseholders, freeholders and the wider housing sector. We are also committed to supporting constructive dialogue between government, leaseholders and professionals in this complex but critical area of property law.”
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