Leasehold Reform in England and Wales

The leasehold system in England and Wales has long been a topic of debate, with nearly 5 million homes currently owned on a leasehold basis. The vast majority of flats in the private sector are leasehold - 94% of owner-occupied flats and 71% of privately rented flats - while around 8% of houses in England also fall under this tenure. 

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In 2022, one in four property transactions involved leasehold homes which demonstrates how common the system remains.

Government Plans to Overhaul Leasehold

In the King’s Speech 2024, the government reaffirmed its commitment to reforming the leasehold system, aiming to move towards a fairer and more transparent property ownership structure. The upcoming Leasehold and Commonhold Reform Bill is set to introduce significant changes, with a draft expected in the second half of 2025. Key proposals include:

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• Easier lease extensions and freehold purchases – Strengthening leaseholders’ rights to extend their leases and buy their freehold, removing some of the current financial and procedural barriers.

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• A shift towards commonhold ownership – Modernising commonhold laws to encourage more property owners to opt for this form of tenure, which provides outright ownership without the limitations of leasehold.

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• Regulation of ground rents – Introducing measures to control ground rent charges for existing leaseholders.

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• Ending forfeiture risks – Removing the ability of freeholders to seize leasehold properties as a penalty for non-compliance with lease agreements.

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• Better rights for freehold homeowners on private estates – Addressing concerns over service charges and management fees in mixed-tenure developments.

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• Regulation of property managing agents – Plans to introduce stricter oversight of managing agents to improve accountability and service standards.

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The government has also indicated it will consult in 2025 on the potential restriction of new leasehold flat sales, as well as refining the rights of homeowners in private estates.

What About Wales?

While leasehold laws apply to both England and Wales, there are some procedural differences. The Leasehold Reform (Ground Rent) Act 2022 already applies to long residential leases in Wales, and further reforms from the Leasehold and Freehold Reform Act 2024 will be implemented through subordinate legislation. The Welsh Government remains committed to following the Law Commission’s recommendations on leasehold reform, with plans set out in its 2021-26 Programme for Government.

How Marsons Solicitors Can Help

With these sweeping changes on the horizon, it’s more important than ever for leaseholders to understand their rights. Whether you’re looking to extend your lease, purchase your freehold, or understand how these reforms affect you, Marsons Solicitors can provide expert legal guidance. Get in touch with our team to discuss your options today.

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