Two speeds of reform
Where leasehold and the Renters’ Rights Act stand in mid-2026
The private rented sector is living through its biggest regulatory shake-up in decades, but the pace of change depends entirely on which part of the property world you’re looking at. Ground rent and leasehold reform is still inching through Parliament, while the Renters’ Rights Act has already landed and is reshaping how agents and landlords operate day to day. Here’s where both stand right now.
Leasehold reform: slow progress, big ambitions
The government published its draft Commonhold and Leasehold Reform Bill back in January, setting out the most far-reaching shake-up of leasehold ownership in a generation. The headline measure is a cap on ground rents for existing leases at £250 a year, falling to a peppercorn after a 40-year transitional period. Alongside it sits a plan to make commonhold the default tenure for new flats, effectively ending the sale of new leasehold properties, plus the abolition of forfeiture as a remedy for unpaid charges.
It sounds decisive, but the practical timeline is anything but rapid. The Housing, Communities and Local Government Committee published its scrutiny report on the draft Bill in late May, running to 165 pages, and the government now has two months to respond formally. Industry watchers expect an amended Bill to reach Parliament properly in the autumn, with Royal Assent realistically not arriving until mid-2027. Even then, the ground rent cap itself may not take legal effect until “late 2028,” subject to parliamentary timing, though Labour backbenchers have been pushing for an earlier date.
There’s also unfinished business from the previous Leasehold and Freehold Reform Act 2024, much of which remains unimplemented after freeholder groups took the government to court. The High Court dismissed that challenge last autumn, but permission to appeal has been sought, adding further uncertainty to when leaseholders will actually see cheaper, longer lease extensions. For landlords with leasehold rental stock, the message right now is: the direction of travel is clear, but don’t expect to feel the financial impact for a couple of years yet.
The Renters’ Rights Act: live and already reshaping the market
While leasehold reform crawls forward, the Renters’ Rights Act has moved at the opposite pace. It came into force on 1 May, and by the end of that month landlords and agents needed to have issued the mandatory Information Sheet to every existing tenant or risk a penalty of up to £7,000. Section 21 “no-fault” evictions are gone, assured shorthold tenancies have converted automatically into rolling periodic tenancies, and rent increases are now limited to once a year via a formal Section 13 notice with two months’ warning, with tenants able to challenge increases at tribunal.
Early market data from Rightmove and Zoopla suggests tenant competition has eased to its lowest level in six years, even as underlying supply shortages keep well-priced, well-presented properties letting quickly. The more interesting story is what’s happening behind the scenes. Several commentators are predicting accelerated consolidation in the agency world: smaller and “accidental” landlords, facing a heavier compliance burden and tighter margins, are increasingly handing management over to professional agents rather than self-managing. That points toward a sector that favours either larger, systemised operators or specialist niche agents, with self-management becoming a less attractive option for casual landlords. Rent Guarantee and Guarantor insurances are becoming more popular.
Lenders and receivers are watching closely too, since the loss of Section 21 means regaining vacant possession—even for sale or repossession—now runs through the courts and Section 8 grounds, lengthening enforcement timelines considerably.
The takeaway
Two reform programmes, two very different clocks. Leasehold change is coming but will take years to bite financially. The Renters’ Rights Act is already live, and the agents and landlords adapting fastest are the ones treating it as an operational reset rather than a paperwork exercise.
Sharon Canning and her team at Move On, are a multi-award winning company who specialise in lettings and are renowned locally of being the experts. For a free, friendly chat, contact Sharon or her team, or email sharon@moveon.biz.
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