The leasehold system in the UK has long been criticised for its complexity and perceived unfairness. Many leaseholders have faced rising service charges, escalating ground rents, and limited control over how their buildings are managed. In 2026, further leasehold reforms are expected to reshape the sector—bringing both opportunities and new considerations for flat owners.
In this article, we explain the latest leasehold reform updates, what they mean in practice, and how leaseholders and Resident Management Companies (RMCs) should prepare.
Leasehold reform refers to changes in legislation aimed at improving the rights of leaseholders. Traditionally, leaseholders do not own the land their property sits on and must comply with terms set by the freeholder. This has historically resulted in:
The UK Government has been working to make the system fairer and more transparent.
https://www.gov.uk/government/collections/leasehold-reform
The Leasehold Reform (Ground Rent) Act 2022 introduced a ban on ground rents for most new leases.
👉 https://www.gov.uk/guidance/leasehold-reform-ground-rent-act-2022
What this means:
New leaseholders should no longer face escalating ground rent costs. However, this does not apply retrospectively to most existing leases.
Reforms aim to simplify lease extensions by:
👉 https://www.lease-advice.org/advice-guide/lease-extension-getting-started/
What this means:
Leaseholders may find it more affordable to extend their lease, helping to maintain property value and mortgage eligibility.
There is a growing focus on improving service charge clarity, including:
👉 https://www.lease-advice.org/advice-guide/service-charges-other-issues/
What this means:
Leaseholders should have better visibility over how funds are spent, reducing disputes and increasing accountability.
The Right to Manage allows leaseholders to take over management of their building without purchasing the freehold.
👉 https://www.lease-advice.org/advice-guide/right-to-manage/
Reforms are expected to:
What this means:
More leaseholders may choose to take control of their building through an RMC or RTM company.
There is ongoing discussion around formal regulation of managing agents, following government-backed recommendations.
👉 https://www.gov.uk/government/publications/regulation-of-property-agents-working-group-report
What this means:
Managing agents may be required to meet stricter standards, improving professionalism across the sector.
Improved Financial Clarity
Leaseholders should benefit from clearer service charge reporting and greater transparency. This enables better understanding of costs and fewer disputes.
With reforms to RTM, leaseholders have more opportunity to influence how their building is managed. However, this also comes with responsibility, including managing contractors and ensuring compliance.
As awareness grows, leaseholders are becoming more proactive in:
👉 https://www.gov.uk/courts-tribunals/first-tier-tribunal-property-chamber
For RMCs, these reforms bring both opportunity and responsibility.
Greater Accountability
Directors must ensure:
Leaseholders are more informed and expect:
Due to increasing complexity—particularly around compliance and financial management—many RMCs benefit from appointing a professional managing agent.
At Legacy Block Management, we are already seeing the impact of these changes across the developments we manage.
Key trends include:
These developments are driving higher standards across the industry and reinforcing the importance of transparent and proactive management.
Understand your obligations, lease length, and ground rent terms.
Ensure service charge accounts are clear, accurate, and well explained.
Ask how they are adapting to leasehold reforms and improving transparency.
If you are dissatisfied, you may explore:
Follow updates from:
While reforms are positive, some challenges remain:
This highlights the importance of strong, professional management.
Leasehold Reform 2026 marks a significant step towards a fairer and more transparent system. Leaseholders can expect improved rights, greater clarity, and increased control—but also a need to be more engaged and informed.
Working with a proactive and professional managing agent is key to navigating these changes successfully.
At Legacy Block Management, we provide transparent and professional block management services tailored to modern developments.
We support leaseholders and directors with:
👉 Contact us today at www.legacybm.co.uk
