Committee publication · Correspondence · 26 February 2026

Letter from the Minister of State for Housing and Planning to the Chair dated 12 February 2026 concerning the publication of 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

Minister of State for Housing and Planning Matthew Pennycook responds to the Housing, Communities and Local Government Committee's inquiry into the draft Commonhold and Leasehold Reform Bill. He commits to providing information on ground rents, transitional arrangements, and implementation timelines, and outlines the government's phased approach to commencement of various measures, including abolishing forfeiture, introducing reformed commonhold by end of Parliament, capping ground rents in 2028, and fixing specific flaws in the 2024 Act before enfranchisement provisions commence.

Key findings

  • Ground rent cap anticipated to take effect in 2028, with mortgageability improvements expected after Royal Assent of the Bill.
  • Forfeiture abolition and replacement with modern lease enforcement system will commence as soon as possible following Royal Assent.
  • Reformed commonhold model intended to be available for use before end of current Parliament.
  • Government must rectify specific flaws in the 2024 Act through primary legislation before enfranchisement provisions can commence; preferred vehicle is the Commonhold and Leasehold Reform Bill.
  • Government working at pace on secondary legislation for 2024 Act implementation, including service charge transparency, building insurance measures, and freehold estate consumer protections.

Tone

Procedural

Topics

housing-reformleasehold-reformproperty-lawground-rentslegislative-scrutiny

Key actors

Matthew Pennycook MP, Florence Eshalomi MP, Housing, Communities and Local Government Committee, Ministry of Housing and Planning

Notable line

I can provide the following clarification which I hope will aid your scrutiny of it: • Measures to abolish forfeiture and replace it with a modern …

Key Quotes

We will make available to the Committee the information, evidence and documentation as needed and at the earliest possible opportunity with a view to enabling you to scrutinise the legislation effectively.
Matthew Pennycook MP · Responding to the Committee's request for information on ground rents, transitional arrangements, and implementation timelines
I anticipate that the cap on ground rents will take effect at some point in 2028, but it could be earlier if the legislation makes timely progress.
Matthew Pennycook MP · On implementation timeline for ground rent cap measures
The government's intention is for the reformed commonhold model to be available for use before the end of this Parliament.
Matthew Pennycook MP · On timing for reformed commonhold implementation
I have been clear with the House that we will not be able to commence the relevant enfranchisement provisions in the 2024 Act until we have rectified a small number of specific flaws that were contained in it.
Matthew Pennycook MP · On conditions for commencing 2024 Act enfranchisement provisions
My firm preference is to rectify them in the Commonhold and Leasehold Reform Bill at its introduction in Parliament.
Matthew Pennycook MP · On how to address flaws in the 2024 Act
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Source · parliament.uk record ↗