Committee publication · Correspondence · 26 February 2026
Letter from the ABI to the Chair dated 17 February 2026 concerning the draft Commonhold and Leasehold Reform Bill
From: Housing, Communities and Local Government Committee
Inquiry: Pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill
Summary
The Association of British Insurers (ABI) writes to the Housing, Communities and Local Government Committee chair expressing significant concerns about the draft Commonhold and Leasehold Reform Bill. The ABI, representing insurers and pension providers with major UK property investments, opposes retrospective changes to property rights without compensation, warning that ground rent caps and commonhold provisions risk undermining investor confidence, raising risk premiums, and damaging the UK's economic growth prospects.
Key findings
- ABI supports proportionate leasehold reform addressing unfair practices but opposes retrospective changes to property rights without compensation as damaging to contract certainty and investor confidence.
- Ground rent cap proposals risk raising risk premiums attached to UK investment and weakening appeal as destination for global capital, contrary to government's growth mission.
- Further reductions to monetary cap or shortened transition periods to peppercorn would risk even greater damage to investor confidence and market disruption.
- Government's impact assessment not published by 12 February deadline, limiting review time; ABI calls for closer scrutiny of policy development and mitigation plans.
- Commonhold proposals lack sufficient detail on commonhold associations' responsibilities, building maintenance duties, and insurance procurement guidance; ABI urges government coordination with financial services sector including mortgage providers.
Tone
AdversarialTopics
Key actors
Association of British Insurers (ABI), Hannah Gurga, Florence Eshalomi MP, Housing, Communities and Local Government Committee, UK Government
Notable line
“… retrospective changes to existing property rights, without compensation for those invested, set a troubling precedent and undermine confidence in contract certainty.”
Key Quotes
“We are deeply concerned that retrospective changes to existing property rights, without compensation for those invested, set a troubling precedent and undermine confidence in contract certainty.”
“This is likely to raise the risk premium that investors attach to the UK and could weaken its appeal as a destination for global capital and the domestic market , undermining the Government's growth mission.”
“… any further changes, such as reducing the monetary cap or shortening the transition period to peppercorn, would risk even further damage to investor co nfidence, disrupt the market and undermine the UK's focus on economic growth.”
“… insurers and pension providers - like the rest of the financial services industry - require a predictable and stable rule of law if they are to have the confidence to invest.”
Source · parliament.uk record ↗