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Only 10 of the 125 sections of the Leasehold and Freehold Reform Act 2024 have actually been switched on, according to a Propertymark report cited by the HomeOwners Alliance [1]. That single figure explains why so many flat owners feel reform is always just around the corner. This leasehold reform November 2026 update sets out what has changed, what is still a draft, and what leaseholders across London and the South East should do while they wait.
Key Takeaways
- The government has said a Bill to cap "fleecehold" administration and permission fees on privately managed estates will be introduced before Christmas 2026 [1].
- New service charge rules, including an annual building condition report and a standard demand form, are due to take effect "as soon as possible from 2027" [1].
- The draft Commonhold and Leasehold Reform Bill would cap existing ground rents at £250 a year, but it is not law and is unlikely to be enacted before the end of 2028 at the earliest [1].
- A consultation on the valuation rates used to price lease extensions closed on 21 October 2026, with no outcome yet [1].
- Abolition of marriage value is on the statute book but not in force, and a Court of Appeal hearing is due in April 2027 [1].
Leasehold Reform November 2026: The Fleecehold Fee Cap Bill
"Fleecehold" describes the fees charged to owners of freehold and leasehold homes on privately managed estates, where residents pay for roads, lighting and open space that councils have not adopted. In September 2026 the government confirmed plans to cap administration and permission fees on these estates and said "a Bill will be introduced before Christmas" to enable it [1].
Two points are worth stressing. First, the level of any cap has not yet been consulted on, so no figure exists [1]. Second, a Bill being introduced is not the same as a law taking effect. Owners on managed estates should keep paying what their deeds require while this moves through Parliament.
New Service Charge Rules From 2027
Service charge transparency is the area closest to delivery. Measures announced in July 2026 would require [1]:
- An annual report on building condition and planned major works.
- A new standard service charge demand form explaining what each charge covers.
- Protection from paying a landlord's legal costs without the right to challenge them, plus the ability for leaseholders to recover their own costs.
- Building information on request, including fire safety records going back up to six years.
The government's stated timetable is "as soon as possible from 2027" [1]. For buyers of flats, these rules will make it easier to see what major works are coming. Until then, a surveyor's inspection of the common parts remains the most reliable way to judge future service charge exposure.
The Ground Rent Cap and the Commonhold Bill
The draft Commonhold and Leasehold Reform Bill, published on 27 January 2026, proposes to [1]:
The Bill was confirmed in the King's Speech in May 2026, and in September 2026 Prime Minister Andy Burnham committed to introducing it in this parliamentary session. Even so, the HomeOwners Alliance considers it unlikely to be enacted before the end of 2028 at the earliest, and the government has reportedly aimed for a late 2028 introduction of the ground rent cap [1].
Nothing in the draft Bill reduces a ground rent today. A leaseholder paying £400 a year will keep paying £400 until the law changes.
Lease Extension Valuations: Still Priced Under the Old Rules
This is the area where the gap between headline and reality is widest. The 2024 Act abolished marriage value in principle, but that provision is not yet in force. The HomeOwners Alliance reports that the Act's enfranchisement provisions cannot be switched on until flaws are fixed through primary legislation [1].
In July 2026 the government launched a consultation on the deferment and capitalisation rates used to price lease extensions and freehold purchases. It closed on 21 October 2026 and no outcome has been published [1]. Meanwhile, the freeholders' judicial review was dismissed by the High Court in October 2025, and a Court of Appeal hearing is due in April 2027 [1].
The practical effect is that lease extension premiums are still calculated under the existing system. A leaseholder with a lease dropping below 80 years continues to face marriage value today.
What This Means for Leaseholders and Flat Buyers
If your lease is near or below 80 years, waiting for reform carries a real cost. The premium rises as the term shortens, and no date exists for the new valuation regime. A specialist leasehold valuation shows what an extension would cost now and how that compares with the risk of waiting.
If you are buying a flat, the forthcoming service charge rules will help, but not yet. A Level 2 or Level 3 survey that looks at the roof, structure and common parts remains the best guard against an unexpected major works bill.
If you own on a managed estate, keep records of every administration and permission fee paid. If a cap is enacted, that paper trail will matter.
A chartered surveyor with leasehold expertise can provide:
- A lease extension or enfranchisement valuation under the current rules.
- A building survey focused on the items that drive service charges.
- An independent view on planned major works and reserve fund adequacy.
FAQ
Has the ground rent cap started yet?
No. The £250 cap is in a draft Bill published in January 2026 and is not law [1].
Should I extend my lease now or wait for marriage value to be abolished?
Abolition is in law but not in force, and no start date exists. A valuation will show whether the cost of waiting outweighs the possible saving [1].
When will the new service charge rules apply?
The government's stated timetable is "as soon as possible from 2027" [1].
What is the fleecehold Bill?
It is a promised Bill, due before Christmas 2026, to cap administration and permission fees on privately managed estates. The cap level has not been set [1].
Conclusion
The leasehold reform November 2026 picture is one of slow, uneven progress. Service charge transparency is nearest, the fleecehold Bill is promised for the coming weeks, and the ground rent cap and commonhold switch remain years away.
Next steps: check your remaining lease term, request your latest service charge accounts and major works plans, and get a professional valuation before making any decision to wait.
References
- HomeOwners Alliance, "Leasehold Reform Latest News 2026", updated 10 November 2026. hoa.org.uk.