King Charles delivered the King’s Speech outlining the government’s legislative priorities, including significant reforms to leasehold law and increased investment in social housing. Key measures focus on capping ground rents and improving building safety, signalling a commitment to address long-standing issues faced by leaseholders and residents.

Leasehold Reform and Ground Rent Cap

The government announced the Commonhold and Leasehold Reform Bill, which proposes to cap ground rents at £250 per year for leaseholders. This legislation aims to “bring an end to the feudal leasehold system,” signalling a major shift in property tenure arrangements. The reform intends to enhance transparency, strengthen resident protections, and improve long-term accountability within the leasehold sector.

Robert Poole, managing director of block management at Glide Property Management, part of LRG, welcomed the clarity provided by the King’s Speech on leasehold reform. He emphasised that while capping ground rent is positive, it represents only one aspect of the broader financial challenges faced by leaseholders, such as service charges, estate charges, insurance, and major works costs. Poole highlighted the importance of the detailed implementation of reforms to ensure they are workable and sustainable in practice.

Social Housing Investment and Building Safety

The speech also confirmed increased government investment in social housing alongside the introduction of a Building Safety Remediation Bill. This bill aims to support residents living in homes with unsafe cladding by accelerating remediation works and strengthening accountability. Timothy Douglas, head of policy and campaigns at Propertymark, stressed the need for swift implementation of remediation funding, enforcement powers, and clear legal responsibilities to protect affected residents and restore confidence in the housing market.

Jeremy Leaf, a north London estate agent and former RICS residential chairman, underlined the importance of properly executed building work to prevent issues similar to those following the Grenfell disaster. He noted that delays in implementing necessary safety reforms are hindering market activity and discouraging new construction at a critical time.

Calls for Accelerated Reform

Propertymark has urged the government to expedite leasehold reform, emphasising the need for clear timelines and delivery to provide certainty for consumers and the housing sector. While supporting the ambition to make commonhold the default tenure for new flats and to strengthen leaseholder rights, Timothy Douglas warned that reforms must be carefully phased to avoid market disruption and allow a smooth transition for existing leaseholders, agents, and developers.

Propertymark has consistently advocated for clearer standards, improved transparency around service charges, professional qualifications for property agents, and practical reforms to boost consumer confidence across the housing market.

Leaseholders Demand Action

The National Leasehold Campaign group expressed frustration, warning that leaseholders are “running out of patience” and calling for urgent government action. They welcomed the King’s Speech commitment to ending the unfair leasehold system and introducing commonhold as the default tenure for new flats. However, they voiced concerns about the practical impact on millions of existing leaseholders, who remain trapped in leases with rising charges and limited rights.

The group stressed the need for clarity and confidence that existing leaseholders will not be left behind as reforms progress. They highlighted that while the draft legislation marks progress, delivery and tangible improvements will ultimately determine success.

What this means for landlords

For landlords, these reforms signal a period of transition in leasehold arrangements and building safety obligations. The capping of ground rents may reduce some income streams from leasehold properties, but the broader focus on transparency and resident protections could improve relationships with leaseholders and reduce disputes over charges.

Increased investment in social housing and accelerated remediation of unsafe cladding will likely impact the wider housing market, potentially affecting demand and regulatory compliance requirements. Landlords should prepare for evolving legal responsibilities and remain informed about changes to leasehold law and building safety regulations.

Engagement with professional bodies and ongoing dialogue with tenants will be essential to navigate these reforms effectively and maintain confidence in rental properties.

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/