Big news for home buyers – The government has just announced plans to ban new leaseholds. This means that future new build flats will be sold as normal instead. This change could make it easier for many people to jump to homeownership.
What does leased stock actually mean?
Let's start with a simple review of the conditions:
Freehold (usually house) 
•You own property and land forever
• Handles all repairs
There are no leases to worry about
Lease rights (usually flat)
•You own the property for a fixed period
• Someone else (freeholder) owns the land and building
• Freeholder handles major repairs
• Pay ground rent and service charges
Ordinary (new route for new construction)
•You own your property entirely
• Get a say in building decisions
• Share the responsibility for building management
No need to worry about land rent or lease renewals
Read the entire article: Leasehold, Freehold, and Normal
What does rental reform mean for you?
If you are purchasing:
More property options to consider
•A clearer understanding of what you own
Potentially lower long-term costs
If you are selling:
•New sales points for leasehold property
• Recent reforms make your property even more attractive
• Potential buyers are less concerned
Changes brought about by last year's leasehold reforms
Read: Conservative Party's “wash-up” debt reform
This new ban could help buyers find the perfect leasehold in London's incredible new construction market. But of course there is the issue of existing lease assets.
Last year, just before conservatives resigned, they pushed through many bills. Rental holding reforms are one of them, and have made some advances in ownership of existing lease assets.
The rollout is a bit difficult. The new government says some aspects of the bill require further consultation and secondary regulations. So here are the things that have changed and yet still:
situation:
Active since January 31, 2025
What does that mean to you:
New owners can quickly extend the lease (or buy a freehold). There's no need to wait two years.
situation:
Active since March 3, 2025
What does that mean to you:
It will increase the right to control the property and abolish the presumption that the leaseholder will pay the legal costs of the freeholder for RTM claims.
What it means:
It's easy to understand what you're paying in terms of collaboration.
What it means:
Leases can be extended for 990 years (not 90 years for flats and 50 years for homes).
What it means:
When a short lease is extended, the property value increases. This “marriage value” is currently divided into leaseholders and freeholders. The new regulations mean this will be sent entirely to the leaseholder.
It's still coming
The biggest problem still being ironed is the rent on the premises of existing properties. so far:
•The 2022 Rental Stock Reform Act banned ground rents on most new residential properties, but it does not apply to leases granted by June 30, 2022.
•The proposed cap on ground rents for existing properties has been scrapped to quickly pass the Lease Reform Act of 2024.
•This new 2025 lease ban does not address ground rents on existing leases, so there is still room for improvement. This is a complex law that will lead your property to a more attractive list and help many London homeowners move faster.
Do you want to buy and sell leasehold rights now? We'll accomplish that
You don't have to wait for the law to achieve your goals. The opportunity is already there. Whether you buy or sell leaseholds, our experts will guide you through the process.
Source: This article on the Summerhold White Paper is reviewed and edited by Foxtons Sales Department to ensure the best information on rental law changes when needed. If you have any questions about this article, ask a Foxtons expert.
