Leasehold and Freehold Reform Update: Where Things Stand in 2026
Updated: Jan 22
Leasehold and freehold reform has been discussed for many years and remains an evolving area of UK property law. While new legislation has been passed, not all changes are in force, and further detail is still awaited.
For leaseholders, freeholders, landlords and advisers, the key challenge is understanding what applies today, what is changing, and how to make decisions during a period of transition.
The direction of reform
Successive governments have set out broad aims for reform, including:
simplifying the leasehold system
improving transparency and accessibility
addressing long-standing concerns around cost and complexity
These objectives underpin recent legislative changes, but translating policy into practice is complex, particularly where established property rights are involved.
The Leasehold and Freehold Reform Act 2024
The Leasehold and Freehold Reform Act 2024 represents a significant stage in the reform programme.
The Act introduces measures intended to:
streamline lease extension and enfranchisement procedures
adjust certain valuation assumptions
reduce some procedural barriers
However, while the Act has received Royal Assent, many provisions are not yet in force and rely on commencement regulations and secondary legislation.
What is still evolving?
Several important elements remain subject to further clarification, including:
when specific sections of the Act will come into effect
how revised valuation frameworks will apply in practice
the detailed mechanics of new or amended rights
Until these points are confirmed, a degree of uncertainty remains for those dealing with leasehold property.
Practical implications right now
For anyone currently extending a lease, considering enfranchisement, or buying or selling leasehold property, the market is best described as transitional.
In practice:
existing leasehold legislation often continues to apply
anticipated reforms may influence expectations, but are not always legally operative
decisions should be based on what applies today, not assumed future change
Valuation considerations during reform
From a valuation perspective, ongoing reform presents particular challenges.
Legislative change does not always translate immediately into market behaviour, and different parties may factor future reform into negotiations in different ways.
Valuation advice therefore needs to be grounded in:
the legal position at the valuation date
observable market evidence
an informed awareness of forthcoming change, without presuming outcomes
This applies regardless of which party is being advised.
A balanced approach
Leasehold reform affects a wide range of stakeholders, often in different ways. During periods of change, clarity and balance are essential.
The most robust approach remains:
relying on the law as it currently applies
staying informed as further provisions are brought into force
taking advice that reflects both present circumstances and future change
Final thoughts
Leasehold and freehold reform is progressing, but it is not yet fully settled. While the overall direction is clearer, important details continue to develop.
Careful, up-to-date advice can help property owners and advisers navigate this period of transition with confidence, particularly where valuation decisions are involved.
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