If you are buying a flat in London in 2026, the word “commonhold” is about to become very important to you. Commonhold explained simply is this: it is a new way of owning a flat where you own your home outright, with no landlord, no ground rent, and no lease ticking down.
The Government confirmed in the 2026 King’s Speech on 13 May that it will bring forward a Commonhold and Leasehold Reform Bill. For London flat buyers, this changes the landscape significantly. However, there are things you need to understand right now, before you sign anything.
What Is Commonhold and Why Does It Matter?
Commonhold is a form of property ownership designed specifically for flats and buildings with shared areas. Under commonhold, you own your flat as a freehold. You also own a share of the building and the land it sits on, together with the other residents.
Because of this, there is no freeholder above you. There is no ground rent to pay. There is no lease length to worry about. Residents manage the building collectively through a commonhold association, with full transparency over shared costs and maintenance decisions.
In contrast, leasehold, which is how almost all flats in London are currently owned, means you own your property for a fixed period of time. After that, ownership reverts to the freeholder. You pay ground rent. You pay service charges set by a managing agent you did not choose. And if your lease falls below 80 years, the cost of extending it rises sharply.
As a result, leasehold has been widely described as one of the most unfair and outdated property ownership systems in the developed world. Most other countries do not use it at all.
Why Is Commonhold Being Introduced Now?
The push for commonhold has been building for years. However, the current Government has accelerated it significantly.
On 27 January 2026, the Government published its draft Commonhold and Leasehold Reform Bill. According to the House of Commons Library, this draft Bill proposes making commonhold the default tenure for all new-build flats in England and Wales. It was confirmed in the 2026 King’s Speech as a priority piece of legislation for this Parliament.
The scale of the problem this is solving is enormous. According to Enact, only around 20 commonhold developments currently exist across the whole of England and Wales. That is because the original Commonhold and Leasehold Reform Act 2002 failed to make the model practical or appealing. Low take-up was largely due to complicated processes, lack of lender confidence, and the difficulty of converting existing leasehold buildings.
The 2026 Bill addresses all of these barriers directly. Furthermore, there is strong cross-party support for the change. Housing Minister Matthew Pennycook confirmed in April 2026 that commencement dates for all parts of the legislation will be set before the end of this Parliament.
Commonhold vs Leasehold: The Key Differences
Understanding the difference between commonhold and leasehold is essential for any London flat buyer right now. Here is a clear side-by-side comparison.
Ownership: Under leasehold, you own your flat for a set number of years. Under commonhold, you own your flat outright as a freehold, with no end date.
Ground rent: Under leasehold, you pay ground rent to a freeholder. This can escalate sharply under doubling clauses or inflation-linked terms. Under commonhold, there is no ground rent whatsoever.
Service charges: Under leasehold, a managing agent appointed by the freeholder sets your service charges. You have limited control over what is spent. Under commonhold, the residents collectively decide on maintenance spending through the commonhold association.
Lease length: Under leasehold, your property loses value as the lease shortens. Properties with fewer than 80 years on the lease become harder to sell and remortgage. Under commonhold, there is no lease and therefore no depreciation of this kind.
Extending your lease: Under leasehold, extending a lease can be expensive and complicated, particularly for shorter leases. Under commonhold, this issue does not exist at all.
In short, commonhold is a fundamentally more equitable and transparent form of ownership. For most buyers, it is the better option in almost every scenario.
What This Means If You Are Buying a Flat in London Right Now
Here is where it gets practical. The draft Bill has been published but it is not yet law. Because of this, almost all flats in London are still sold as leasehold in 2026.
So what should you do as a buyer right now? The answer depends on which type of flat you are considering.
If You Are Buying a New-Build Flat
Some forward-thinking developers are already offering commonhold on new schemes. Ask your estate agent and the developer directly whether the property is being sold as commonhold or leasehold. If it is leasehold, ask why, and scrutinise the ground rent and service charge terms very carefully before proceeding.
According to Benham and Reeves, new buyers in 2026 must carefully review all lease terms and confirm that ground rent complies with the proposed new rules. In particular, look for any doubling clauses or inflation-linked ground rent escalations. These are red flags that can seriously affect your ability to sell or remortgage in the future.
If You Are Buying an Existing Leasehold Flat
According to Sell Flat UK, the same factors that influenced flat purchases before the reform announcement still apply today. Short leases still attract discounts. High ground rents still concern buyers and mortgage lenders. Managing agent performance still matters.
In other words, the reforms do not yet protect you. You need to do the same due diligence you would always have done.
Check the remaining lease length. If it is below 80 years, budget for the cost of a lease extension and take advice from a solicitor before exchanging. Check the annual ground rent and whether it can increase. Check the service charge history for the last three years and whether any major works are planned.
Furthermore, ask your solicitor to check whether any existing legal challenges by freeholders could affect how quickly the new laws are implemented. According to Homehold, freeholders have already attempted to challenge parts of the Leasehold and Freehold Reform Act 2024 in the High Court, with permission to appeal sought in November 2025.
If You Are Converting to Commonhold
The draft Bill proposes that existing leasehold buildings can convert to commonhold voluntarily, but this requires agreement from residents and mortgage lenders. Under the new framework, the process will be simplified compared to the current rules, which require 100% agreement from leaseholders, according to Enact.
However, this will not happen quickly or automatically. For most flat owners, the practical benefits of the reforms will arrive gradually as the legislation moves through Parliament and comes into force.
When Will Commonhold Be Available for New Flats?
The Government expects to introduce the final Commonhold and Leasehold Reform Bill to Parliament in the autumn 2026 session, according to Neon Property Services. However, Housing Minister Pennycook acknowledged in April 2026 that the actual ban on new leasehold flats is unlikely to be switched on within this Parliament.
In short, commonhold is coming. However, it will arrive in stages, not overnight. For buyers in 2026, leasehold is still the reality for most flat purchases in London. Knowing how to navigate it properly is therefore essential.
Key Facts: Commonhold in 2026 at a Glance
- 20 commonhold developments currently exist in England and Wales
- 1.3 million leasehold properties in London alone are affected by the reforms
- 5 million leaseholders across England and Wales will benefit from the Bill
- £250 per year proposed ground rent cap for existing leaseholders in London
- Autumn 2026 expected timeline for the final Bill to enter Parliament
- 2026 King’s Speech confirmed the Commonhold and Leasehold Reform Bill as a priority
- 100% agreement currently required from leaseholders to convert to commonhold (set to be reduced)
Buying a Flat in London in 2026? Talk to Homefinders First.
Buying a leasehold flat in a rapidly changing legal landscape is not straightforward. The right advice at the right moment can save you thousands of pounds and months of stress.
At Homefinders, we have helped London flat buyers navigate leasehold for over 40 years. We know what to look for in a lease, what questions to ask the seller, and how to identify the properties that represent genuine value in the current market.
If you are buying, we will make sure you fully understand what you are purchasing before you commit, leasehold terms, service charge history, ground rent obligations, and all.
If you already own a leasehold flat, we can walk you through what the 2026 reforms mean for your specific property and whether now is a good time to sell or extend your lease.
If you are selling a leasehold flat, we will help you prepare your documentation, handle buyer enquiries confidently, and achieve the best possible result.
Do not navigate the 2026 leasehold landscape alone.
Book a free, no-obligation call with the Homefinders team today.