Committee publication · Report · 27 May 2026 · HC 40
Easy Read - 1st Report - Pre-legislative scrutiny 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
Government response deadline: 27 July 2026
Summary
The Housing, Communities and Local Government Committee conducted pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill, which aims to improve protections for 5 million leaseholders in England and Wales. The Committee surveyed over 7,000 leaseholders and recommends four key changes: bringing forward the ground rent cap deadline to end-2027, justifying or shortening the 40-year phase-out period, establishing independent oversight of Managing Agents, and clarifying voting rights in shared ownership arrangements.
Key findings
- The draft Bill will introduce a cap on ground rent and allow leaseholders to establish commonholds with control of their buildings, but the Committee believes implementation should be accelerated
- Ground rent cap should take effect before end of 2027, not the currently proposed timeline
- Government's proposed 40-year timeline to eliminate ground rent entirely requires justification; Committee recommends exploring shorter timeframes
- Managing Agents lack independent oversight mechanism; Committee recommends establishing an organisation to regulate their performance
- Voting rights for shared ownership arrangements remain unclear and need explicit clarification in the Bill
Recommendations
- The cap on ground rent should commence before the end of 2027
- The Government should justify the 40-year ground rent phase-out timeline and consider whether a shorter period is feasible
- Establish an independent organisation to oversee Managing Agents and ensure service standards
- Clarify in the Bill who holds voting rights on decisions in shared ownership arrangements
Tone
ProceduralTopics
Key actors
Housing, Communities and Local Government Committee, House of Commons, Government, Leaseholders in England and Wales, Managing Agents
Notable line
“We think the draft Bill will help leaseholders, but we want it to help more and to happen quicker.”
Key Quotes
“We think the draft Bill will help leaseholders, but we want it to help more and to happen quicker.”
“The cap on ground rent should start before the end of”
“The Government should explain how they chose 40 years. We recommend they think if a shorter time is possible.”
Source · parliament.uk record ↗