What Has Changed for Leaseholders and Renters in 2026?

Key Points

- The Leasehold and Freehold Reform Act 2024 is now law but only partially in force: the two-year ownership requirement for lease extension and enfranchisement was removed on 31 January 2025, and right-to-manage thresholds were raised on 3 March 2025, but the 990-year extension, abolition of marriage value, and ban on new leasehold houses are still awaiting commencement.

- The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. Phase 1 came into force on 1 May 2026, abolishing section 21 "no-fault" evictions and converting all assured shorthold tenancies into periodic assured tenancies.

- Since 1st May 2026, landlords in England cannot serve a new section 21 notice. Possession now requires a section 8 notice citing one of the statutory grounds reformed by the Act, including two new grounds covering sale of the property and landlord occupation.

- The Leasehold Reform (Ground Rent) Act 2022 has been in force since 30 June 2022 and bans ground rent on new residential long leases, so any lease granted from that date must carry only a peppercorn rent.

- A private rented sector database and a mandatory landlord ombudsman are due in late 2026 under Phase 2 of the Renters' Rights Act, while the Decent Homes Standard extension and Awaab's Law for the private rented sector remain subject to further consultation.

For leaseholders in England and Wales, the most immediate change is that the two-year ownership rule for lease extension has gone and the right-to-manage regime has been extended, but the headline reforms on 990-year extensions and abolition of marriage value remain unstarted. For private tenants and landlords, section 21 no-fault evictions were abolished on 1 May 2026, when the Renters' Rights Act 2025 Phase 1 took effect, and all assured shorthold tenancies converted to periodic assured tenancies on the same date.

The Leasehold and Freehold Reform Act 2024 and the Renters' Rights Act 2025 together represent the most substantial reforms to residential property law in England and Wales for a generation, affecting every leaseholder, freeholder, private landlord, and tenant. The original article on this page described both pieces of legislation as Bills working their way through the Committee Stage. That was accurate in early 2024. As of June 2026, both have become Acts, but what matters is knowing which reforms are already live, which remain pending, and why that gap has real financial consequences.

The Leasehold and Freehold Reform Act 2024

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024. The government has brought its provisions into force in stages, and several headline reforms remain unstarted as of June 2026.

Section 27, which removed the two-year ownership requirement for lease extension and freehold enfranchisement, came into force on 31 January 2025. Any leaseholder can now begin a statutory extension or collective enfranchisement claim immediately on registration of their title, without the two-year wait previously required under the Leasehold Reform, Housing and Urban Development Act 1993. From 3 March 2025, the right-to-manage threshold was raised from 25% to 50% non-residential floor space, and leaseholders making a right-to-manage claim are no longer automatically liable for their landlord's legal costs on that claim.

The 990-year lease extension standard, the abolition of marriage value, and the ban on new long leases of houses have not been commenced. In October 2025 the High Court dismissed a judicial review brought by freeholders on human rights grounds, but the Court of Appeal granted permission to appeal on all grounds in April 2026. With that challenge still live, the government has acknowledged that full implementation will take "years not months."

For leaseholders with leases approaching 80 years, the delay carries real cost. Marriage value, the additional premium payable once a lease falls below 80 years, continues to apply under current law. Suppose a Solihull leaseholder holds a flat with 81 years unexpired: they could extend immediately now and avoid triggering marriage value. If they wait two years and the lease drops to 79 years, that premium kicks in and could add several thousand pounds to the cost. Anyone in that position should speak to a conveyancing solicitor sooner rather than later.

The Leasehold Reform (Ground Rent) Act 2022 has been in force since 30 June 2022 and bans ground rent on new residential long leases of more than 21 years. Any such lease granted from that date can only carry a peppercorn (zero) ground rent. It does not affect leases entered into before 30 June 2022, and ground rent on those older leases remains unchanged.

The Renters' Rights Act 2025

The Renters' Rights Act 2025 received Royal Assent on 27 October 2025. Phase 1 came into force on 1 May 2026 and changed the law for every landlord and tenant under an assured or assured shorthold tenancy in England.

Section 21 no-fault evictions are abolished. A landlord cannot serve a new section 21 notice from 1 May 2026, and any notice served before that date lapses on 31 July 2026. Possession now requires a section 8 notice citing a statutory ground under the Housing Act 1988 as amended. Two new no-fault grounds were introduced: Ground 1A (landlord intends to sell) and an amended Ground 1 (landlord or close family member wishes to move in). Both grounds require four months' notice, and neither can be used during the first 12 months of a tenancy.

All assured shorthold tenancies converted to periodic assured tenancies on 1 May 2026. Tenancies signed on or after that date cannot be fixed-term. Landlords can raise rent once per year only, by serving a section 13 notice with at least two months' notice of the new rent. Tenants may challenge a proposed increase at the First-tier Tribunal if they consider it above the market rate.

From the same date, rental bidding wars are prohibited: landlords and agents must publish an asking rent and cannot accept offers above it. Rent in advance is restricted to one month, payable after the tenancy agreement is signed but before it starts. Tenants have the right to request a pet, which a landlord must consider and cannot unreasonably refuse within 28 days. Landlords and agents cannot discriminate against prospective tenants on the basis that they have children or receive benefits.

Phase 2, expected in late 2026, will introduce a mandatory Private Rented Sector Database and a PRS Landlord Ombudsman. Phase 3, with dates to be set following consultation, will extend the Decent Homes Standard and Awaab's Law to the private rented sector. Pearcelegal's residential and commercial property team advises landlords and tenants across Solihull and Birmingham on the new possession regime.

What Remains to Come

For leaseholders, the most pressing outstanding question is when the 990-year extension term and abolition of marriage value will commence. The Court of Appeal's permission to appeal in April 2026 means the government cannot start those valuation provisions while the human rights challenge remains live. When they do come into force, they will apply to new extension and enfranchisement claims from that point and will not be retrospective.

The ban on new long leases of houses is also pending. Once started, it will prohibit developers from granting residential long leases on houses in England and Wales. Service charge transparency provisions, including a standardised demand form and an annual report, remain outstanding too. When commenced, they will give leaseholders stronger tools for scrutinising and contesting management expenditure.

For landlords and tenants, the Phase 2 and Phase 3 reforms to the private rented sector will continue to arrive through 2026 and beyond. Anyone with a lease, a rented property, or a planned property transaction should take advice specific to their situation rather than acting on general expectations about when future provisions will take effect.

Frequently Asked Questions

Can I extend my lease immediately after buying?

Yes, you can. Section 27 of the Leasehold and Freehold Reform Act 2024 removed the two-year ownership requirement with effect from 31 January 2025. Any leaseholder registered at HM Land Registry as owner of a qualifying flat or house can serve a statutory lease extension notice on the day their purchase completes.

Does marriage value still apply to lease extensions?

Yes, it does. The Leasehold and Freehold Reform Act 2024 provides for abolition of marriage value, but those sections have not yet been commenced by statutory instrument. Freeholders have brought a human rights challenge that reached the Court of Appeal in 2026, creating further delay. Until the relevant provisions commence, marriage value applies in full to any lease with fewer than 80 years unexpired.

When did section 21 evictions end?

Section 21 no-fault evictions were abolished on 1 May 2026, when Phase 1 of the Renters' Rights Act 2025 came into force. Any section 21 notice served before 1 May 2026 can be used to issue possession proceedings only up to and including 31 July 2026, after which it lapses entirely.

What is a periodic assured tenancy?

A periodic assured tenancy is a rolling tenancy with no fixed end date, running from period to period (typically month to month) until either party ends it by giving the required notice. Under the Renters' Rights Act 2025, all assured shorthold tenancies in England converted to this model on 1 May 2026. Tenants end the tenancy by giving two months' notice. Landlords must use section 8 grounds to seek possession.

Does the ban on ground rent affect my existing lease?

No, it does not. The Leasehold Reform (Ground Rent) Act 2022 applies only to new residential long leases granted on or after 30 June 2022. If your lease was granted before that date, it is not affected by the 2022 Act, and your ground rent obligations remain as set out in your lease. The government has not yet legislated to cap or reduce ground rent on pre-2022 leases.

About the Author

Mark Stockton (SRA number 122231) is a Consultant Conveyancing Solicitor at Pearcelegal, advising on residential conveyancing and commercial property transactions across Solihull, Birmingham, Coventry, Sutton Coldfield and Warwick. Admitted in 1983, Mark ran his own firm, Anthony Stockton Solicitors, from 1999 until joining Pearcelegal in July 2020 to focus on client work. He is regulated by the Solicitors Regulation Authority (SRA ID 122231).

Last reviewed: 8th June 2026