Proposed leasehold reform explained: a brief overview

Proposed leasehold reform explained: a brief overview

The leasehold reform bill was introduced to the House of Commons on 27 November 2023 and has now moved to the House of Lords, giving homeowners more control and fairness in leasehold.

March 27, 2024
2 min read

Let’s start with the basics: what exactly is leasehold? Well, in the UK, it’s like this – you own the property itself for a set period, usually a bunch of decades or even centuries, but not the land it sits on. That bit of ground belongs to the freeholder, the one you pay ground rent and service charges, etc. It’s a system that has had its fair share of criticism, especially with ground rents going up and lease terms getting trickier.

The Leasehold Reform: What’s Changing?

Now, the UK government’s stepping in to shake things up. According to a recent piece in The Telegraph, they’re looking to put the brakes on new leasehold houses, except in very special cases. Why? To stop folks from getting stuck with crazy lease terms and rising ground rents.

But that’s not all. If you’re a leaseholder, you might be in for some good news. You could soon have the right to extend your lease by up to a whopping 990 years, and guess what? No ground rent (premium fee applies). That is a game-changer for both house and flat leaseholders, giving them more say over their homes.

And there’s more good news coming. As The Law Society points out, the government is also aiming to simplify the process of buying the freehold of your property. That means less hassle and fewer headaches for leaseholders, putting them back in the driver’s seat.

Implications for Homeowners

If you’re already a homeowner with a leasehold property, these changes are like a weight off your shoulders. The idea of extending your lease without breaking the bank and saying goodbye to those pesky ground rents? It’s a breath of fresh air.

And if you’re thinking about buying a home? Well, the proposed ban on new leasehold houses means you won’t have to worry about falling into the same traps as some current leaseholders. Plus, knowing you can extend your lease without dealing with ground rent hikes means your investment will hold its value over time.


In a nutshell, the leasehold reform in the UK is a game-changer. By putting the brakes on new leasehold houses, extending lease terms, and simplifying the freehold buying process, the government’s got your back.

Got questions or need more info on the leasehold reform or anything else property-related? Don’t hesitate to reach out. I’m here to help you navigate every step of your homeownership journey.