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The End of Leasehold: Government Unveils Commonhold Reform Plans
On 3 March 2025, the UK government published the Commonhold White Paper, outlining major reforms to abolish new leasehold flats and establish commonhold as the default tenure. This marks a significant shift in property ownership laws, fulfilling a key Labour manifesto promise.
What Is Commonhold, and Why Does It Matter?
Under the proposed changes, homeowners will own a stake in their building from day one—eliminating costly ground rent payments and granting them control over how their buildings are managed. This reform aims to simplify property ownership and make it fairer for homeowners.
Key Changes in the Commonhold White Paper
The White Paper introduces a comprehensive new legal framework to modernize and enhance the commonhold system. Key proposals include:
- Commonhold for All Developments – The new rules will allow commonhold ownership for all property types, including mixed-use buildings and shared ownership homes.
- Stronger Protections for Homeowners – Homeowners will gain greater control over building management, with more democratic decision-making in budgeting and clearer rules for making changes to local regulations.
- Increased Developer Confidence – The reforms provide greater flexibility in development rights, ensuring that developers can build with confidence while safeguarding homeowner interests.
- Mortgage Lender Assurance – New measures will protect lenders’ stakes in commonhold buildings, including mandatory public liability insurance and reserve funds to maintain financial stability.
- Better Commonhold Management – New rules will enhance director appointments, enforce clear repair standards, and require the use of reserve funds to prevent unexpected costs for homeowners.
When Will These Reforms Take Effect?
The Commonhold and Leasehold Reform Bill is expected to be published later in 2025, detailing the full legal framework for transitioning from leasehold to commonhold in England and Wales.
What This Means for Homeowners and Investors
For property buyers and investors, these reforms create a more transparent and fair property market, reducing financial burdens associated with leasehold fees and ground rents. With commonhold set to become the standard tenure, now is the time to prepare for these transformative changes in UK property law.
Renters Rights Bill Clears Commons: Major Renters Rights Bill Clears Commons: Major Reforms for Tenants in England
On 14 February 2025, the Renters Rights Bill successfully passed through the House of Commons, marking a major step toward reforming the private rental sector in England. The bill now moves to the House of Lords for approval before receiving Royal Assent and becoming law.
What the Renters Rights Bill Means for Tenants
Once enacted, this bill will provide greater security for renters, introducing key reforms, including the abolition of no-fault (Section 21) evictions. The UK Government has described this as the biggest shake-up to the private rental sector in over 30 years.
Key Changes Under the New Law
The bill has evolved since its introduction, incorporating crucial amendments aimed at protecting tenants from unfair rental practices. The major changes include:
- End of No-Fault Evictions – Landlords will no longer be able to evict tenants without reason, ensuring renters have greater stability in their homes.
- Limits on Upfront Rent Payments – Previously, there was no cap on how much rent landlords could demand upfront, with some tenants required to pay up to a year’s rent in advance. Under the new law, landlords can only request one month’s rent upfront along with a security deposit of up to 5 or 6 weeks’ rent.
- Protections for Bereaved Guarantors – In cases where a tenant passes away, their guarantor—often a family member—will no longer be liable to continue rent payments for the remainder of the tenancy.
What’s Next for the Renters Rights Bill?
The House of Lords will now review the bill, with Royal Assent expected later this year. Once the bill becomes law, tenants across England will benefit from greater protection, stability, and fairer rental terms.
Planning & Infrastructure Bill: Major Changes to Land Acquisition and Housebuilding
On 11 March 2025, the Planning and Infrastructure Bill was introduced to Parliament, marking a significant step in the UK Government’s push to accelerate housebuilding and streamline the planning system.
What Does the Planning & Infrastructure Bill Mean?
A key proposal in the bill grants local councils greater powers to seize land through compulsory purchase orders (CPOs), aiming to speed up housing developments and boost infrastructure projects.
Key Changes in the New Bill
The legislation proposes several major reforms, including:
- Stronger Compulsory Purchase Powers – Councils will be able to acquire land without owner consent to facilitate faster property development.
- End of ‘Hope Value’ Compensation – Under current laws, landowners receive compensation based on potential future planning permissions. The bill seeks to remove this requirement, potentially reducing land purchase costs.
- Impact on Rural Landowners – There are concerns that farmland, countryside, and local green spaces could be acquired at lower market rates, impacting rural landowners and communities.
The Future of UK Housing & Infrastructure
If passed, this bill will have far-reaching implications for landowners, developers, and local councils. While it aims to streamline development processes, it also raises concerns about landowner rights and fair compensation.
Northern Ireland Councils Take Over Landlord Registration Scheme
From 1 March 2025, local councils in Northern Ireland will officially take over the Landlord Registration Scheme, a move announced by Communities Minister Gordon Lyons. Originally introduced in February 2014, the scheme created a single database of registered private landlords. This transition aims to improve landlord compliance and strengthen tenant protections.
What This Means for Landlords
The shift to council oversight ensures that all private landlords comply with registration rules. As local councils already manage housing enforcement, they are well-positioned to identify and address rental sector issues within their communities.
Key Landlord Registration Requirements
- All private landlords must register their rental properties.
- Registration fees: £70 for an online application, £80 for a paper application.
- Registration is valid for 3 years and covers multiple properties.
- Non-compliance penalties: Failure to register can result in a fine of up to £2,500.
Why the Changes Matter
This reform strengthens tenant rights, encourages responsible property management, and helps councils enforce rental sector regulations effectively. If you’re a landlord in Northern Ireland, ensure your properties are properly registered to avoid fines and stay compliant.
For more information, see here.