Government sets out leasehold reforms including broadband rights and ground rent cap

Leaseholders will have a legal right to request fast broadband connections, with freeholders unable to unreasonably refuse.

Under the Leasehold and Commonhold Reform Bill, leaseholders will gain stronger rights, including making lease extensions and freehold purchases cheaper and easier, as well as simplifying the process of converting leasehold flats to commonhold.

The government has also announced that the proposed cap on ground rents at £250 a year will not come into effect until 2028.

Reliable broadband should not be a luxury

The government claim many leaseholders are currently blocked from getting gigabit-capable internet because permission is refused or delayed by the freeholder who owns the building.

Ministers claim the new law will help end this freeholder veto and give flat owners more power over everyday essentials like the internet.

UK Telecoms Minister Liz Lloyd said: “Fast, reliable broadband should not be a luxury in modern life. We want everyone to be able to get online, whether to apply for jobs, build a business, or stay connected with loved ones.

“These new laws will give leasehold flat owners a legal right to request internet upgrades for their home without being ignored by the freeholder, helping ensure every household can benefit from the services and opportunities available in the digital age.”

Bring feudal leasehold system to an end

The government has also announced new reforms under its Leasehold and Commonhold Reform Bill, including a move for new flats to be sold under commonhold ownership, as well as stronger protections against losing a home over small debts, effectively ending forfeiture.

Housing Minister Matthew Pennycook said: “This government made a clear and unambiguous commitment to bring the feudal leasehold system to an end.

“The Commonhold and Leasehold Reform Bill marks the beginning of the end for the leasehold system that has tainted the dream of homeownership for so many.

“This bill, previously published in draft, will transform the experience of homeownership for millions of leaseholders across the country, modernise property law and deliver a modern housing market.”

However, the government has confirmed that the £250 cap on ground rents is expected to come into effect in 2028, with ministers claiming it will “end ground rents for good”.

It says the new commonhold model is expected to be available from 2029, with the government saying that both existing leaseholders and new flat buyers will be able to hold full freehold ownership of their homes.