Blog Post | Bucks Property

If you own a flat, are thinking of buying one, or you are weighing up whether to sell, you have probably felt the same frustration as most homeowners: leasehold can be hard to understand, expensive to run, and unpredictable at the exact moment you need clarity.

At the end of January 2026, the Government published a draft Commonhold and Leasehold Reform Bill and associated consultation documents. In plain English, the direction of travel is clear: leasehold is being pushed to the sidelines, and commonhold is being positioned as the long-term default for flats.

This is still draft legislation, and timings matter, but it is important enough that flat owners and buyers should understand what could change, what will not, and what you can do now to protect your position.

Leasehold vs commonhold:

Leasehold means you own the flat for a fixed number of years and you typically pay things like ground rent and service charges, with a freeholder sitting above the structure.

Commonhold is closer to what most people assume “owning a flat” should feel like. You own your unit outright and you and your neighbours collectively own and manage the building through a commonhold association.

Commonhold has existed in England and Wales since 2002 but has barely been used. The Government’s proposal is essentially to rebuild it so it can work at scale.

The headline proposals that matter to homeowners:

1) New flats would move away from leasehold.

The Government’s consultation is explicitly focused on banning the use of leasehold for new flats, with commonhold becoming the default structure going forward. If you are buying a new-build flat in the coming years, the long-term expectation is that the ownership model should become simpler and fairer. The key point is “coming years”, because there will be consultation, a transition, and an implementation period.

2) Ground rents could be capped for existing leases.

For existing leaseholders, the draft Bill proposes a cap on ground rents at £250 per year, with an intention for ground rents to reduce to a peppercorn (effectively zero) after a set period. This is meaningful if you have a lease with escalating ground rent clauses, or if you are buying a flat where the ground rent terms raise lender eyebrows. Important reality check: professional commentary suggests implementation may not be immediate and could run into the later 2020s depending on how the Bill progresses.

3) The threat of forfeiture is in the firing line.

The draft Bill also proposes abolishing forfeiture and replacing it with a more proportionate enforcement approach. For homeowners, this is about protection from extreme outcomes over relatively small disputes. For buildings, it means enforcement could become more court-led and procedural, which may change how arrears and disputes are handled in practice.

4) Making it easier to move existing blocks toward commonhold.

The draft proposals are designed to make it easier for existing leaseholders to take control and move away from the current model. The detail matters here and it is exactly where scrutiny is focused.

What this means if you are buying a flat in Buckinghamshire right now:

This is the practical bit. If you are buying today, you should not rely on draft legislation to rescue a poor lease. Buy what is good now.

Here is what we advise buyers to focus on in 2026:

Lease length: Short leases still hurt value and mortgageability. The proposed direction of travel does not remove the need to check the unexpired term and the extension route.

Ground rent terms: Even if a cap arrives later, lenders and valuers assess the lease you are buying today. If the ground rent is high or escalates aggressively, it can still be a problem now.

Service charge transparency and building health: The biggest cost for most flat owners is not ground rent, it is the service charge. You want clean accounts, a sensible budget, evidence of maintenance, and realistic reserve planning.

Who controls the building: Resident-led management (where it is competent) often gives better day to day control and communication. Investor-led structures can be fine too, but you want professionalism and clear accountability.

What this means if you already own a flat:

If you are an existing leaseholder, the key is to stay calm and stay informed. Draft legislation creates headlines, but your day to day position is still driven by your lease, your building, and your management structure. A sensible approach for most owners is:

Know your numbers: service charge trend, sinking fund balance, planned works.
Know your lease length: if you are approaching a term that could make the flat harder to sell or remortgage, plan early.
Keep paperwork tidy: buyers, solicitors, and lenders increasingly want clarity and documentation.
If you are thinking of selling in 2026: price and presentation still matter more than ever. Nationally, data points to higher supply and more choice for buyers, which puts pressure on sellers to be sharp.

A forward-looking view: why this matters beyond “fairness:

Leasehold reform is not just a consumer rights story. It is also about confidence. When buyers feel uncertain, they hesitate. When lenders feel uncertain, they tighten. When the industry has a cleaner, simpler model for flat ownership, transactions become easier, and that tends to support a healthier market over time. This is why, even in draft form, this is worth paying attention to.

The Bucks Property view:

If you are buying or selling a flat this year, the winning strategy is straightforward:

Get the fundamentals right: lease term, ground rent, service charge clarity, building maintenance.
Do not assume reforms will fix a weak lease quickly: use today’s facts, not tomorrow’s headlines.
If you want certainty, plan early: whether that is lease extension advice, a sale timeline, or simply understanding how your block is run.

If you want, share the basic details (development name, lease length, ground rent, service charge, and whether there is a sinking fund) and I will tell you, bluntly, what a buyer will think and where the risks sit.