Writing in Property118, Shabnam Ali-Khan, a Partner at Russell-Cooke and a member of ALEP (Association of Leasehold Enfranchisement Practitioners) warns that reform of the leasehold system is widely accepted as overdue. The existing model is complex and, in some cases, open to abuse. The Leasehold and Freehold Reform Act (LAFRA), rushed through under the previous government, aimed to address these issues by reducing lease extension and enfranchisement costs, increasing service charge transparency and expanding the Right to Manage.

However, many of its provisions are not yet in force, remain unclear, or depend on further legislation, including the expected Leasehold and Commonhold Reform Bill. This has already created uncertainty across a sector that underpins more than five million homes in England, affecting leaseholders, freeholders, lenders, developers and managing agents alike.

Leasehold is not a niche tenure. Around 20% of England’s housing stock is leasehold, rising to over 50% in London. It supports flats, shared ownership homes, retirement housing and complex mixed-use developments. While flawed, the current framework provides lenders with confidence, defines maintenance responsibilities and allows buildings to function safely at scale. Reforming such a system requires care, consultation and stability.

The experience of LAFRA highlights the danger of good intentions colliding with practical reality. Unimplemented provisions and reliance on secondary legislation have made professional advice more complex and created a prolonged transitional period. Layering further reform on top risks compounding uncertainty rather than resolving it.

The government’s renewed enthusiasm for commonhold is understandable and welcomed in principle. However, commonhold is not yet ready to replace leasehold wholesale. Mortgage lender caution, limited developer incentives and lack of sector familiarity mean a rapid shift could stall housing delivery and undermine confidence.

The article argues that reform should be evolutionary, not revolutionary. Testing commonhold in new developments, providing clear guidance and allowing time for adaptation would help avoid unintended consequences.

Leasehold reform is necessary, but rushed reform risks destabilising the housing market for years. Getting it right requires collaboration, clarity and realism — not speed alone.