As per our manifesto commitment, this government is taking the steps necessary to finally bring the feudal leasehold system to an end in this Parliament.

Publication of the draft Commonhold and Leasehold Reform Bill was delayed by a matter of weeks to finalise elements of policy and drafting.

The draft Bill was published yesterday, and I refer the hon. Member to the Written Ministerial Statement made (HCWS1278).

As per our manifesto commitment, this government is taking the steps necessary to finally bring the feudal leasehold system to an end in this Parliament.

Publication of the draft Commonhold and Leasehold Reform Bill was delayed by a matter of weeks to finalise elements of policy and drafting.

The draft Bill was published yesterday, and I refer the hon. Member to the Written Ministerial Statement made (HCWS1278).

Officials in my Department engage regularly with representatives of freeholders, leaseholders, managing agents and other professional bodies with an interest in the leasehold sector in England and Wales.

The draft Commonhold and Leasehold Reform Bill was published yesterday, and I refer the hon. Member to the Written Ministerial Statement made (HCWS1278).

My Department does not hold data on long leases that have been treated as assured shorthold tenancies as a result of ground rent increases. Nor does it hold data on the number of leases that have been forfeited due to ground rent arrears.

The government has acted through the Renters’ Rights Act 2025 to ensure that leases granted for more than 21 years will be excluded from the assured tenancy regime. The relevant provisions will come into force on 27 December 2025 and will mean that from that date it will no longer be the case that, under provisions of the Housing Act 1988, leaseholders paying a ground rent of more than £250 a year (or more than £1,000 in London) can be legally regarded as assured tenants, and as such can have their home repossessed if they fall behind on their ground rents.

We also recognise that under the current legal framework, landlords may rely on a contractual right to forfeit a lease where a leaseholder breaches a covenant – such as the failure to pay ground rent. The availability of forfeiture as a remedy can create a significant power imbalance between landlords and leaseholders, with its use resulting in the leaseholder losing both their home and any equity accrued in the property.

We will address this through the draft Commonhold and Leasehold Reform Bill by removing the disproportionate and draconian threat of forfeiture as a means of enforcing lease compliance. The Government also remains committed to addressing unregulated and unaffordable ground rents and doing so in legislation.

My Department does not hold data on long leases that have been treated as assured shorthold tenancies as a result of ground rent increases. Nor does it hold data on the number of leases that have been forfeited due to ground rent arrears.

The government has acted through the Renters’ Rights Act 2025 to ensure that leases granted for more than 21 years will be excluded from the assured tenancy regime. The relevant provisions will come into force on 27 December 2025 and will mean that from that date it will no longer be the case that, under provisions of the Housing Act 1988, leaseholders paying a ground rent of more than £250 a year (or more than £1,000 in London) can be legally regarded as assured tenants, and as such can have their home repossessed if they fall behind on their ground rents.

We also recognise that under the current legal framework, landlords may rely on a contractual right to forfeit a lease where a leaseholder breaches a covenant – such as the failure to pay ground rent. The availability of forfeiture as a remedy can create a significant power imbalance between landlords and leaseholders, with its use resulting in the leaseholder losing both their home and any equity accrued in the property.

We will address this through the draft Commonhold and Leasehold Reform Bill by removing the disproportionate and draconian threat of forfeiture as a means of enforcing lease compliance. The Government also remains committed to addressing unregulated and unaffordable ground rents and doing so in legislation.

The Government has already legislated via the Leasehold Reform (Ground Rent) Act 2022. The Act makes homeownership fairer and more transparent for thousands of future leaseholders future leaseholders, by preventing landlords under most new residential long leases from requiring a leaseholder to pay a financial ground rent. If any ground rent is demanded as part of a new residential long lease that is regulated by the Act, it cannot be for more than one peppercorn per year.

We understand that some leaseholders have suffered as a result of high and escalating ground rents. Unfair practices have no place in the housing market and the Government is committed to ending them. We want to see homeowners who have been affected obtain the justice and redress they deserve. This is why we asked the Competition and Markets Authority (CMA) to investigate potential mis-selling of homes and unfair terms in the leasehold sector.

The CMA have secured commitments benefiting over 20,000 leaseholders.

The Government is committed to promoting fairness and transparency for homeowners and making sure that consumers are protected from abuse and poor service.

The former Secretary of State (Rt Hon Robert Jenrick MP) announced ambitious reforms covering enfranchisement valuation, 990-year leases, removing the retirement exemption from zero ground rent measures and commonhold on 7 January. This was followed by a Statement in Parliament from the former Secretary of State on 11 January.

The announcement is part of Government’s response to the Law Commission’s reports and we will respond to their remaining recommendations on enfranchisement, commonhold and right to manage in due course.

The Government has since established the “Commonhold Council” as a partnership of industry, homeowners and Government that will help prepare consumers and the market for widespread take-up of commonhold.

We have also introduced the Leasehold Reform (Ground Rent) Bill, currently in Parliament. The Ground Rent Bill is the first of major two-part legislation to reform the leasehold system in this Parliament. We aim to legislate further on wider reforms within this Parliament.

The Government also intends to give freeholders on private and mixed tenure estates equivalent rights to leaseholders to challenge the reasonableness of estate rentcharges, as well as a right to apply to the First-tier Tribunal to appoint a new manager to manage the provision of services. In addition, we will ensure that where a freeholder pays a rentcharge, the rentcharge owner is not able to take possession or grant a lease on the property where the rentcharge remains unpaid for a short period of time. We will translate these measures into law when parliamentary time allows.