The residential property sector is entering a major period of reform through the Renters’ Rights Act 2025, the Leasehold and Freehold Reform Act 2024, and the recently published draft Commonhold and Leasehold Reform Bill 2026. Together, these measures aim to strengthen consumer protections and increase transparency across the property sector.
Collectively, these reforms will impact almost all property‑holding organisations, including RPs and require early planning to ensure the implementation of appropriate updates to procedures and policies.
Renters Rights Act 2025 (RRA) – what to expect and when
The RRA is one of the largest pieces of legislation to hit the rental sector. The impact on RPs will be significant with changes affecting market rental properties, social housing stock and shared ownership leases.
Limited sections came into force on 27 December 2025, including changes to the status of shared ownership leases and powers for local authorities. In terms of the remaining sections, the Government has taken a phased approach for implementation.
Phase 1 will take effect on 1 May 2026 with the introduction of a new tenancy regime for the private rented sector (PRS), including for RPs who operate PRS.
- All new and existing tenancies will become assured tenancies.
- Section 21 ‘no-fault’ evictions will be abolished for the PRS (subject to some transitional provisions).
- PRS landlords must follow the revised section 13 rent increase process.
- Ban on rental bidding and restrictions on rent paid in advance.
- Making it illegal to discriminate against tenants in receipt of benefits or who have children
- PRS landlords must not unreasonably withhold consent to a tenant’s request to keep a pet
- Strengthened enforcement powers for local authorities.
Phase 2 is expected to be brought into force late 2026 and will see the introduction of a private rented sector database and a new PRS Landlord ombudsman will be established.
Phase 3 will see standards raised through the extension of Awaab’s law and Decent Homes Standard into PRS. The dates for implementation are to be confirmed following consultation.
The abolition of Section 21 and tenancy reforms for social rented properties are to be introduced later. This is likely to be within Phase 2 as there needs to be a statutory consultation.
Leasehold and Freehold Reform Act 2024 (LAFRA) – where are we?
LAFRA received Royal Assent in May 2024, but most of the provisions require secondary legislation to bring them into force.
LAFRA is split into 9 ‘parts’, and major changes are being introduced to the service charge regime in Part 4 and in relation to estate service charges in Part 5.
Consultation on how changes to the service charge regime will be implemented closed on 26 September 2025 and a report on the responses is awaited. This talked about different dates for the introduction of the various changes within Part 4 and the Government proposed a transitional period of 12 months for some of the more major changes.
Part 4 includes provision for –
- Standardised demands for service charges and a new annual report.
- Standard form of service charge accounts and time limits on production.
- Enhanced rights to information for leaseholders in relation to service charges and insurance.
- Duty to publish an administration charge schedule.
- Insurance commission will no longer be recoverable.
- Changes to the FTT litigation costs regime.
The Part 4 consultation also considered some miscellaneous matters including changes to Section 20 Consultation with proposals to increase the financial thresholds that trigger Section 20.
Part 5 of LAFRA proposes enhanced protections for freehold homeowners. If implemented, Part 5 will give freehold owners similar rights to those afforded to leaseholders. A Government consultation on Part 5 was also issued on 18 December 2025 and remains open for responses until 12 March 2026.
Draft Commonhold and Leasehold Reform Bill 2026 (CLRB)
Following on from the white paper on commonhold issued almost a year ago, the Government has published the first draft of CLRB. This sets out their proposals to invigorate commonhold with a view to making it the default tenure in the future. Within CLRB, the Government proposes a ban on long leases of flats and a consultation was also published on 27 January asking for views on this proposed measure. The consultation remains open until 24 April 2026.
The draft CLRB also contains other proposals for further reform to leasehold including: –
- Capping ground rent at £250 per annum for existing leases, reducing to a peppercorn after 40 years.
- The abolition of forfeiture for residential long leases, replacing it with a more proportionate lease enforcement regime.
- Repealing certain enforcement powers relating to rentcharges on freehold estates.
The bold changes set out in the proposed reforms highlight the Government’s focus to overhaul the residential property and management sectors. RPs will be subject to significant changes as the various pieces of legislation come into force and these changes will impact on the majority, if not all, of an RP’s stock.
