The UK government has outlined significant reforms to the leasehold system, aiming to modernise property ownership and improve leaseholders’ rights. Key changes include granting leaseholders the legal right to request fast broadband connections and delaying the introduction of a ground rent cap until 2028.

Legal Right to Fast Broadband for Leaseholders

One of the most notable reforms is the introduction of a legal right for leaseholders to request gigabit-capable broadband connections. Currently, many leaseholders face obstacles when freeholders refuse or delay permission to install fast internet services in their buildings. The new legislation will prevent freeholders from unreasonably withholding consent, ensuring leaseholders can access reliable, high-speed internet.

UK Telecoms Minister Liz Lloyd emphasised the importance of this change, stating: “Fast, reliable broadband should not be a luxury in modern life. We want everyone to be able to get online, whether to apply for jobs, build a business, or stay connected with loved ones.” She added, “These new laws will give leasehold flat owners a legal right to request internet upgrades for their home without being ignored by the freeholder, helping ensure every household can benefit from the services and opportunities available in the digital age.”

Reforming Leasehold Ownership and Ground Rent

The government’s Leasehold and Commonhold Reform Bill also aims to make lease extensions and freehold purchases more affordable and straightforward. It includes measures to simplify the conversion of leasehold flats to commonhold ownership, a system that allows flat owners to hold freehold rights collectively rather than through leasehold arrangements.

Housing Minister Matthew Pennycook described the reforms as a decisive step away from the traditional leasehold system, saying: “This government made a clear and unambiguous commitment to bring the feudal leasehold system to an end.” He added, “The Commonhold and Leasehold Reform Bill marks the beginning of the end for the leasehold system that has tainted the dream of homeownership for so many.”

The bill also introduces stronger protections for leaseholders against losing their homes over minor debts by effectively ending forfeiture, which has been a contentious issue in leasehold law.

Ground Rent Cap Delayed Until 2028

While the government has proposed capping ground rents at £250 per year, this measure will not come into effect until 2028. Ministers have stated that this delay will allow for a smoother transition and have claimed the cap will “end ground rents for good.”

The new commonhold model, which will enable both existing leaseholders and new flat buyers to hold full freehold ownership of their homes, is expected to be available from 2029. This shift is intended to provide greater security and control for flat owners, moving away from the traditional leasehold system’s complexities.

What this means for landlords

Landlords should prepare for changes that will affect leasehold properties, particularly flats. The legal right for leaseholders to request broadband upgrades may require landlords and freeholders to facilitate or at least not obstruct installation of high-speed internet infrastructure. This could involve coordinating with telecom providers and managing building access.

The delay in the ground rent cap until 2028 provides landlords with a transitional period but signals a future reduction in income from ground rents. Additionally, the move towards commonhold ownership may alter the dynamics of property management and ownership structures, potentially reducing the number of leasehold properties over time.

Landlords should stay informed about these reforms to ensure compliance and to understand how they may impact lease agreements, property valuations, and management responsibilities.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/