Regulation16 July 20268 min read

Leasehold Reform: Where Things Stand in July 2026

RealYield Team

Property Analyst

The government has just confirmed it will miss its own deadline on leasehold reform, and this time it says so itself.

Housing Minister Matthew Pennycook has written to the Housing, Communities and Local Government Committee to say the department will not meet the 27 July 2026 deadline for its formal response to the Committee's leasehold reform report. The reason given is the disruption caused by Keir Starmer's resignation as Prime Minister on 22 June. The response, Pennycook says, will not land before Parliament rises for summer recess on 16 July. That pushes any formal reply into September at the earliest.

If you own a leasehold flat as a buy-to-let, this matters less for what it changes today and more for what it tells you about the pace of reform. Nothing here alters your lease, your ground rent, or your service charge this week. But the timeline for when it might has slipped again, and it is worth being clear-eyed about what that means for decisions you might be weighing, particularly around lease extensions.

For the full picture of what the reforms will eventually mean for flat landlords, see our leasehold reform guide. Here is where things actually stand today.

The Missed Deadline

Some background first. The Committee published its pre-legislative scrutiny report on the draft Commonhold and Leasehold Reform Bill on 27 May 2026. Under the usual convention, government has sixty days to respond formally, which put the deadline at 27 July.

On 8 June, the Housing Minister sent an interim letter acknowledging the report, but that was not the formal response. The formal response is the one that matters: it sets out which of the Committee's recommendations government accepts, rejects, or will consider further, and it is normally the step that clears the way for a bill to be introduced to Parliament.

Frequently Asked Questions

Has the government responded to the Housing Committee's leasehold reform report?

No. The formal response was due by 27 July 2026, sixty days after the committee's report was published on 27 May 2026. Housing Minister Matthew Pennycook has confirmed the government will miss this deadline, citing the disruption caused by Keir Starmer's resignation as Prime Minister on 22 June 2026. The government says it will not respond before Parliament's summer recess, which runs from 16 July to 1 September 2026.

Is the Commonhold and Leasehold Reform Bill law yet?

No. It remains a draft bill. It was published on 27 January 2026, underwent pre-legislative scrutiny by the Housing, Communities and Local Government Committee, and is now waiting on the government's formal response before it can be introduced to Parliament for its first reading. The Committee has asked government to commit to introducing the final bill in autumn 2026, but no date is confirmed.

What is the quid pro quo lease consultation?

It is a separate, narrower consultation launched on 2 July 2026, asking whether leases where a leaseholder agreed a higher ground rent in exchange for a lower purchase price should be exempt from the proposed £250 ground rent cap. It runs for eight weeks, closing on 27 August 2026. It is not the government's formal response to the Committee's report.

Should I extend my lease now or wait for marriage value to be abolished?

The Leasehold and Freehold Reform Act 2024 includes provisions to abolish marriage value on lease extensions below 80 years, but those provisions have not been brought into force. A group of freeholders has challenged the reforms in court; the High Court dismissed their claim in October 2025, but the Court of Appeal has granted permission for a further hearing. Until that litigation resolves and the government commences the provisions, current rules, including marriage value below 80 years, still apply. Waiting is not a risk-free strategy. Get independent advice from a leasehold solicitor or LEASE before deciding.

Related Insights