Mortgage Market

Leasehold Reform Proposals Could Reshape the Property Market

Leasehold Reform Proposals Could Reshape the Property Market

Leasehold Reform Proposals Could Reshape the Property Market

Jamie Mielczarek
Lets Talk

Mortgage Adviser & Protection Specialist

Leasehold Reform Proposals Could Reshape the Property Market

Published: 29 June 2026

The Government's proposed leasehold reforms continue to move through Parliament and, if introduced, could represent one of the biggest changes to leasehold ownership in decades.

Much of the attention has focused on reducing costs for leaseholders, but the proposals could also have a significant financial impact on landlords, freeholders and investors who own ground rent portfolios.

What is changing?

One of the key proposals is to limit ground rents, with many leases eventually moving to a peppercorn (effectively zero) ground rent after a set period.

The reforms also build on previous changes to make it easier and potentially less expensive for leaseholders to extend their lease or purchase the freehold.

The aim is to create a fairer system for homeowners, many of whom have faced increasing ground rent charges and expensive lease extensions.

What could this mean for landlords?

For landlords and freeholders, the proposals could substantially reduce future income.

Ground rent has traditionally formed part of the long-term value of many investment portfolios. If that income is capped or removed, the value of those assets could fall.

Some industry experts have also suggested that pension funds and institutional investors with exposure to ground rent investments could see the value of those investments reduce.

Potential impact on new housing

There are also concerns that reducing the attractiveness of ground rent investments could make developers and institutional investors less willing to fund future residential developments.

Whether this has a noticeable impact on housing supply remains to be seen, but it is one of the issues being debated as the legislation progresses.

What should landlords do now?

Although the reforms have not yet become law, landlords may wish to start preparing by:

  • Reviewing leases that contain higher or increasing ground rents.

  • Assessing how the proposals could affect future rental income.

  • Speaking with lenders if borrowing is secured against ground rent income.

  • Keeping up to date with the progress of the legislation.

  • Taking professional legal and financial advice where appropriate.

What does this mean for homeowners?

For leaseholders, the proposed reforms are intended to make owning a leasehold property simpler and more affordable over the long term.

However, until the legislation is finalised, buyers and existing leaseholders should remember that the current rules still apply. Anyone purchasing a leasehold property should continue to understand:

  • The remaining lease term.

  • The current ground rent provisions.

  • Service charges.

  • Any future costs associated with extending the lease.

How Chetwood Lloyd Mortgages can help

Leasehold properties often require additional consideration during the mortgage process, particularly where lease lengths or ground rent arrangements may affect lender criteria.

If you're buying a leasehold home, remortgaging, or simply want to understand how the proposed reforms may affect your plans, our experienced advisers are here to help.

At Chetwood Lloyd Mortgages, we provide independent, fee-free mortgage advice and can guide you through the options available, ensuring you understand both your mortgage and the wider implications of owning a leasehold property.

Share this post

Jamie Mielczarek
Jamie Mielczarek
Jamie Mielczarek

Jamie Mielczarek, founder of Chetwood Lloyd Mortgages, brings 25 years of experience and a commitment to honest, client-first advice rooted in family values and full independence.

Our Latest News

Our Latest News

Our Latest News

New content, straight to the point. Practical knowledge for your financial journey.

Mortgage Market
Mortgage Market

Remortgage searches rise 40% as homeowners review their options

Remortgage searches rise 40% as homeowners review their options

Housing Market
Housing Market

House prices hold steady, but mortgage costs still squeeze buyers

House prices hold steady, but mortgage costs still squeeze buyers

Protection Insurance
Protection Insurance

Only 48% of UK adults have a valid will: what homeowners need to know

Only 48% of UK adults have a valid will: what homeowners need to know

Mortgage Market
Mortgage Market

Mortgage rates rise again as gilt yields climb ahead of the Budget

Mortgage rates rise again as gilt yields climb ahead of the Budget

Housing Market
Housing Market

2.5% Deposit Scheme for First-Time Buyers

2.5% Deposit Scheme for First-Time Buyers

Housing Market
Housing Market

Could the Government add £1,000 a year to your first-home deposit?

Could the Government add £1,000 a year to your first-home deposit?

Mortgage Market
Mortgage Market

First-Time Buyers Could Borrow Up to 6.5 Times Income

First-Time Buyers Could Borrow Up to 6.5 Times Income

Mortgage Market
Mortgage Market

Mortgage Deal Ending? Act Before Your Payments Rise

Mortgage Deal Ending? Act Before Your Payments Rise

Mortgage Market
Mortgage Market

More than half of first-time buyers think getting a mortgage is difficult

More than half of first-time buyers think getting a mortgage is difficult

Housing Market
Housing Market

Where Are First-Time Buyers Finding a Way Onto the Property Ladder?

Where Are First-Time Buyers Finding a Way Onto the Property Ladder?

Equity Release / Lifetime Mortgages
Equity Release / Lifetime Mortgages

Home improvements remain the leading reason for equity release

Home improvements remain the leading reason for equity release

Protection Insurance
Protection Insurance

Could private health insurance help you avoid borrowing for treatment?

Could private health insurance help you avoid borrowing for treatment?