Leasehold reform continues to dominate conversations across the property sector and government, with growing momentum behind plans to phase out leasehold in favour of commonhold over the coming years. For leaseholders, freeholders, managing agents and property professionals alike, the proposed changes could mark one of the biggest shifts in residential property ownership in a generation.

At the end of March, we were fortunate to attend the All-Party Parliamentary Group (APPG) on Leasehold and Commonhold Reform at Westminster, alongside Housing Minister, Matthew Pennycook. The event provided valuable insight into the Government’s intentions for the future of leasehold.

During the session, Matthew Pennycook made the Government’s position clear, reaffirming his determination to bring an end to the leasehold system within this Parliament. This announcement signals a major turning point for the housing sector and highlights the increasing focus on creating fairer, more transparent ownership structures.

For further insight into the APPG discussion, we recommend reading this article from the Leasehold Knowledge Partnership, an organisation Sapphire is proud to be accredited with:

Pennycook Promises to End Leasehold This Parliament

Leasehold reform was also referenced in the recent King’s Speech 2026 on 13 May 2026, where further assurances were given that the Government intends to reform the current leasehold system and accelerate the move towards commonhold.

If you missed it, you can read the full speech here:

The King’s Speech 2026 – Full Transcript

What Changes Could Be Introduced?

The proposed reforms are expected to include:

  • A new commonhold framework designed to make commonhold a practical option for a broader range of developments and support its transition as the default tenure for new flats.
  • A ban on new leasehold flats, signalling a significant shift in how residential developments are structured.
  • Simplified conversion to commonhold, making it easier for existing leaseholders to transition their buildings away from leasehold arrangements.
  • Ground rent caps, with existing ground rents proposed to be limited to £250 per year before reducing to a peppercorn after 40 years.
  • The abolition of forfeiture, replacing the current system with a new enforcement regime aimed at strengthening protections for leaseholders.
  • Further reforms to enfranchisement and estate management, helping to improve fairness and transparency for residents.

What Does This Mean for Leaseholders?

While the detail and timeline of the proposed legislation are still unfolding, one thing is clear: the Government’s planned reforms could fundamentally reshape residential property ownership in England and Wales.