The UK government confirmed new leasehold reform measures on July 16, 2026, granting leaseholders enhanced powers to inspect service charges and challenge unreasonable costs starting next year.
The measures mandate annual reports detailing building conditions and major work plans.
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Under the upcoming rules, landlords must issue standardized service charge demand forms specifying payment breakdowns and coverage.
The regulation prevents landlords from passing unchallengeable legal fees to leaseholders during cost disputes while allowing leaseholders to apply for their own legal cost recovery.
Landlords must also provide building safety and maintenance invoice records dating back six years within specified response times.
Industry Data Highlights Widespread Friction
According to research from industry body Propertymark, 93% of leaseholders reported they would not purchase a leasehold property again, citing challenges with rising service charges and resale difficulties.
Propertymark added that 78% of estate agents withdrew at least one leasehold home from the market over the last two years because it was unsellable.
Surveys conducted by Propertymark among 1,200 leaseholders and 200 real estate agents showed that 86% of leaseholders experienced service charge increases over the past 24 months.
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Furthermore, 89% encountered difficulties when attempting to contest unfair expenses.
"The system is in desperate need of reform. While moving to commonhold will help, this will take time to implement," explains the report.
"All the while, leaseholders will continue to be trapped in their homes while facing rising costs."
The industry organization urged ministers to review the proposed 40-year timeline for reducing ground rents to a peppercorn rate, introduce standardized lease formats, and offer financial support for leaseholders buying their freeholds.
Official statistics show England contains 1.9 million private rented leasehold homes, consisting of 1,574,000 flats and 337,000 houses.
Although ministers announced in April that the complete abolition of the leasehold system remains delayed until after the current Parliament, consultations are now underway to simplify lease extensions.
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These consultations explore fixed valuation rates in regulations to minimize cost disputes and protect leaseholders from paying landlord legal, administrative, or valuation fees during enfranchisement.
