The Housing, Communities and Local Government Committee has urged ministers to toughen the draft Commonhold and Leasehold Reform Bill, saying the current package still leaves flat owners exposed to high charges, weak management standards and a long wait for relief.
The cross-party report, published on 27 May, backs the broad move away from leasehold but says the government should move faster on capping ground rents, give leaseholders stronger control over their buildings and regulate managing agents more firmly. For landlords with leasehold flats, the message is that reform is still moving – and the compliance and cost picture may yet tighten further.
That matters now because many buy-to-let investors in flats are already dealing with higher service charges, building safety costs and uncertainty over how commonhold conversion will work in practice. If ministers accept more of the committee’s recommendations, the balance of power in leasehold blocks could shift again.
Committee wants faster ground rent action
The committee said the proposed £250 cap on existing ground rents is a meaningful step, but argued ministers should bring it in by late 2027 rather than let the issue drag on. It also questioned why the government is proposing a 40-year transition to zero ground rent instead of a shorter 20-year route.
For landlords, that matters because the value and saleability of some leasehold investments already depends on how buyers and lenders price future liabilities. Landlord Knowledge recently reported that flat investors are already on notice over the draft leasehold reform bill, while a separate report showed leasehold sales are taking far longer to reach exchange than many owners expect.
Managing agent regulation moves back up the agenda
One of the sharper recommendations is for an independent regulator for property management agents, with powers strong enough to sanction rogue operators and remove licences. That will be welcomed by many leaseholders, but it also points to a more tightly controlled operating environment for landlords who rely on block management they do not fully control.
The committee also warned that several Law Commission recommendations are still missing from the draft bill. In its view, leaving those out could make commonhold conversion too hard and too expensive for existing leaseholders. The full draft Commonhold and Leasehold Reform Bill material on GOV.UK sets out the framework now under scrutiny.
Why flat landlords should watch the next draft closely
The immediate effect is not a new rule today. The more important point is that MPs are pressing ministers to go further before the bill is finalised, and some of the pressure points cut straight across the flat investment market – ground rents, service charges, managing agents and block control.
This follows Landlord Knowledge’s report on Matthew Pennycook ruling out overnight leasehold abolition, which suggested ministers were trying to avoid a sudden shock to the flats market. The committee’s latest intervention points in the same direction politically, but it also shows pressure is building for a firmer final package.
What this means for landlords
- If you own leasehold flats: review any exposure to high ground rents, service charge disputes and major works before refinancing or listing a property for sale.
- Watch for: any move to shorten the timetable on ground rent reform or to add tougher managing agent regulation to the final bill.
- Bottom line: leasehold reform is still moving, and flat landlords should not assume the current draft is the final shape of the rules.
Editor’s view
Leasehold reform no longer looks like a one-off legislative event. For landlords with flats, it is becoming a rolling source of legal and cost risk that needs active monitoring, not passive hope.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 27 May 2026
Sources: Housing, Communities and Local Government Committee, GOV.UK
Related reading: Leasehold reform bill puts flat investors on notice
