The Draft Commonhold and Leasehold Reform Bill was published in draft on 27 January 2026.

Amongst other things, it seeks to abolish the use of forfeiture in residential leases and replace it with an alternative statutory lease enforcement scheme. 

These proposed reforms are in the context of a proposed ban on future leasehold properties (subject to some permitted exceptions). The ban will not apply retrospectively and so long residential leases that began before the ban will still exist. The Government wants to abolish the ability of a landlord to forfeit those leases.

The Government want to do this because it sees forfeiture as draconian and often disproportionate. It wants to replace it with a fairer system. 

The Bill has not yet been introduced into parliament. It is currently with the HCLG Committee to consider whether the proposed reforms will be effective, and if any changes are needed before the final version is introduced to Parliament. The findings are due ‘later in the Spring’ of 2026. 

Under the proposed new scheme, as currently drafted, it will be for a Judge to determine the most appropriate and proportionate order to address the breach of lease.

Pre-conditions for enforcement will include:

• the need for an ‘explanatory statement’ to have been served on the leaseholder (which may be in a prescribed form)
• the need for breaches to be admitted in writing or confirmed by a court or tribunal (mirroring current requirements for forfeiture apart from rent arrears).
• a lease enforcement notice must be served (akin to current s.146 notice) with a minimum notice period of 28 days, giving a final opportunity for remedy of the breach. It cannot be served until 14 days after pre-conditions have been met and within 6 months from the breach confirmation (unless extended by agreement).  The notice must be served on the tenant, anyone else responsible, and interested parties.

There will be additional requirements for unpaid service or administration charge, which look akin to existing restrictions on the total amount of arrears or the length for which they have been due. 

Certain breaches will be excluded, including non-payment of ground rent and breaches arising from incapacity, insolvency or death.

A Judge will be able to consider the following remedies: 

• remedial orders – certain actions required to rectify the breach by a certain date. 7 days after the given deadline, a Landlord can apply for a declaration of non-compliance if relevant and then apply for a new remedy.
• orders for sale - receiver to be appointed to conduct the sale. There will be a default position for distribution of proceeds, but the court will have discretion to depart from it. The default position is that any sub-leases stay in place, but with a separate power of the court to end sub-leases where fair and reasonable to do so.

It will no longer be possible for a court to terminate the lease. 

When considering an application for enforcement, a judge will be able to award costs incurred in connection with obtaining a final determination, a lease enforcement notice, and making a lease enforcement claim.

In relation to contractual recovery of costs, existing leases that have terms relating to recovery of costs relating to forfeiture are to be read as requiring payment of reasonable costs incurred in connection with or in anticipation of a lease enforcement claim.

We will monitor the progression of the bill through parliament – please do ensure you are signed up to receive notifications of our blogs and publications to ensure you stay up to date.

For any questions, please speak to Rebecca Sembuuze.