For landlords, investors and homeowners alike, understanding the proposed reforms is becoming essential.

What is an EPC?

An EPC measures the energy efficiency of a property and assigns a rating from A (most efficient) to G (least efficient). The certificate also contains recommendations for improving energy performance and reducing running costs.

EPCs are generally required whenever a property is sold, let or constructed. They currently remain valid for ten years.

The Current Position

Under the existing Minimum Energy Efficiency Standards (MEES), most residential properties in the private rented sector in England and Wales must achieve a minimum EPC rating of E before they can be lawfully let. Landlords who fail to comply may face financial penalties and enforcement action.

While this standard has been in place for several years, the Government considers it insufficient to meet fuel poverty and carbon reduction targets.

The Government’s Proposed Reforms

The Government has confirmed its intention to increase minimum energy efficiency standards within the private rented sector, with a target of requiring privately rented homes to achieve the equivalent of EPC C by 2030.

The proposals form part of the Government’s wider Warm Homes Plan and are intended to create warmer, more energy-efficient homes while reducing tenants’ energy bills.

If implemented, the changes would represent one of the most significant regulatory developments affecting residential landlords in recent years.

EPC Reform – More Than Just a Letter Rating

Perhaps the most significant aspect of the proposals is that the EPC system itself is expected to change.

The Government is proposing to move away from the current single rating system and introduce new metrics that assess a property’s energy performance in greater detail. Future EPCs are likely to place greater emphasis on factors such as:

• Energy efficiency;
• Carbon emissions;
• Heating systems;
• Fabric performance of the building; and
• Running costs for occupants.

As a result, achieving compliance may no longer be as straightforward as obtaining a particular letter rating. Properties will instead be assessed against a broader range of energy performance measures.

What Could This Mean for Landlords?

Many landlords are likely to face investment requirements over the next few years.

Properties built before modern insulation standards, particularly Victorian and Edwardian housing stock, may require upgrades such as:

• Loft and wall insulation;
• Double or triple glazing;
• Improved heating controls;
• Solar panels;
• Low-carbon heating systems; and
• Heat pumps.

The Government’s consultation suggested that millions of privately rented homes may require improvements before 2030.

To mitigate the financial burden, the Government has also proposed a maximum investment cap and various exemptions where compliance would be disproportionately expensive or impractical. Recent announcements indicate a proposed cost cap of £10,000 per property, together with affordability exemptions in certain circumstances.

Impact on Property Transactions

Energy efficiency is increasingly becoming a factor in property valuations, mortgage lending and purchaser due diligence.

Prospective buyers are paying closer attention to EPC ratings because future upgrade costs may affect a property’s overall affordability. Likewise, lenders are under growing pressure to improve the environmental performance of their mortgage portfolios.

For investors acquiring buy-to-let properties, EPC compliance should now be considered at the outset. A property that appears attractively priced may require significant capital expenditure before it can continue to be let lawfully after 2030.

What Should Property Owners Do Now?

Although some details of the reforms are still being finalised, property owners should avoid taking a “wait and see” approach.

Practical steps include:

• Reviewing existing EPC ratings across property portfolios;
• Identifying properties currently rated D, E, F or G;
• Obtaining advice on likely upgrade costs;
• Considering energy efficiency improvements alongside planned refurbishment works; and
• Monitoring further legislative developments as the Government finalises EPC reforms.

Early planning is likely to be significantly more cost-effective than undertaking works immediately before any compliance deadline.

Looking Ahead

Energy efficiency is becoming a key regulatory and commercial consideration within the residential property sector. While the final detail of the new EPC framework is still emerging, landlords and property investors should expect higher minimum standards, increased scrutiny and greater emphasis on building performance over the coming years.

Those who prepare early will be best placed to protect asset values, maintain compliance and meet the expectations of both tenants and future purchasers.

To find out more contact Caroline Vernon or the Residential Property Team. 

1. What Defines a Buyer’s Market?

A buyer’s market exists when supply exceeds demand sufficiently to give purchasers meaningful negotiating power: the ability to buy below asking price, impose conditions, and take their time. Classic indicators include:

• Availability of properties rising
• Properties sitting on the market longer (increased average days to sell)
• Sale prices achieved consistently below asking price
• Fewer competing offers per property
• Motivated sellers accepting subject-to-survey or subject-to-finance conditions without resistance

 

2. Supply & Demand

One of the clearest signals in 2026 has been a sustained increase in the number of homes coming to market. Estate agents have reported the highest levels of available stock since the pre-pandemic era.  This has been driven by:-

• Landlord exits — the cumulative effect of increased Stamp Duty Land Tax (SDLT) on additional dwellings (raised to 5% in late 2024), loss of mortgage interest relief, EPC upgrade obligations, and the Renters’ Rights Act 2024 has prompted a significant wave of buy-to-let disposals, flooding certain markets — particularly flats and terraced houses — with stock.
• Upsizers and downsizers re-entering the market — households who delayed moves during the 2022–2024 high-rate period are now acting, creating both supply and demand simultaneously.
• New build completions — housebuilding has recovered modestly, adding further pressure to resale properties particularly in outer London and the Midlands.

The result: buyers in many areas are choosing between multiple comparable properties rather than scrambling for scarce choices.

 

3. House Price Trends

After the market correction of 2022–2023 and the subdued recovery of 2024–2025, UK house prices in mid-2026 are broadly flat to marginally positive on an annual basis — a marked contrast to the double-digit growth of the pandemic years.

Prices are, however, heterogeneous. Prime central London and highly desirable commuter villages continue to hold firm; ex-rental flats and new build apartments in oversupplied urban markets are where buyer leverage is greatest and provides a great opportunity.

 

4. Mortgage Market Conditions

The Bank of England’s base rate cutting cycle — which began in August 2024 — has continued into 2026, bringing the rate to around 3.75–4.00% as at mid-2026. The practical effect:

• Two-year fixed rates are broadly available in the 4.0–4.5% range for well-qualified borrowers, down significantly from the 2023 peaks of 6%+.
• Five-year fixed rates are slightly lower, offering medium-term certainty.
• Affordability remains stretched relative to pre-2022 norms, meaning the pool of active, proceedable buyers — though growing — is still constrained. This continues to moderate upward price pressure.

The affordability constraint is itself a buyer’s market driver: sellers cannot realistically achieve peak 2021/22 valuations and those who need to sell are pricing to the market.

 

5. Stamp Duty Reversion (April 2025)

The temporary SDLT thresholds introduced in September 2022 expired on 31 March 2025. Since then:

• The nil-rate threshold for standard residential purchasers has reverted to £125,000 (from £250,000).
• First-time buyer relief reverted to a nil-rate threshold of £300,000 (from £425,000), with the relief ceiling back at £500,000.

This has added meaningful transaction costs back into the equation, particularly for mid-market buyers in London and the South East. It has slightly dampened demand at those price points and given buyers a further bargaining chip — many are openly negotiating price reductions to offset their increased SDLT liability.

 

7. Practical Implications for Buyers

For buyers actively in the market, the following conditions currently apply in their favour:

• Negotiating room exists — offers of 3–5% below asking are being accepted on properties that have been listed for more than four weeks.
• Conditions can be imposed — buyers can more readily insist on survey conditions, longer completion periods, and vacant possession warranties.
• Chain-free and cash buyers hold significant premium — sellers are paying a premium for certainty given the elevated fall-through rate.
• Leasehold flats — post-Leasehold and Freehold Reform Act 2024 uncertainty around service charges and enfranchisement valuations has created genuine buyer leverage in the flat market; appropriate due diligence should be undertaken before pricing in too deep a discount.

 

8. Conclusion

UK residential property market in June 2026 is the most buyer-friendly it has been since the post-pandemic correction. Increased stock, motivated sellers (particularly departing landlords), a moderating price environment, and declining but not yet fully normalised mortgage rates have together shifted negotiating power materially toward buyers.

That said, this is a segmented buyer’s market. It is most pronounced in:

• Leasehold flats and urban apartments
• Former buy-to-let properties
• Properties in less demand-constrained regional markets

It is least pronounced in:

• Good-quality family houses in sought-after school catchments
• Prime locations with persistent international or wealth demand
• Undersupplied rural or coastal markets

 

For conveyancers and property lawyers, the practical upshot is an uptick in conditional offers, renegotiations post-survey, and buyers exercising more scrutiny over title and service charge issues before exchange. Due diligence windows are longer and fall-throughs more frequently – both factors worth building into transaction management advice to clients.

To find out more contact our Residential Real Estate team. 

What is proposed is a ban on new leasehold flats as the Labour government takes steps to honour its manifesto commitment to ensure commonhold becomes the default tenure. Commonhold, introduced in 2004 under the Commonhold and Leasehold Reform Act 2002, offers a freehold alternative where flat owners hold direct ownership of their unit, and the communal areas are held in shared ownership through a commonhold association (CA).

Unlike leasehold, commonhold eliminates issues related to ground rent, service charges, and lease extensions, providing homeowners with long-term security and control. It is worth noting that owners will still be bound to contribute towards maintenance, insurance and management costs through commonhold obligations, budgets and reserve funds.

Despite its benefits, commonhold has seen limited adoption due to its rigid legal framework and concerns from lenders and developers. The government seeks to address this with a range of proposals to improve and expand the commonhold system, making it more attractive and practical for developers, homeowners, and lenders.

Why this matters?

This will obviously have a significant impact on the super prime market in London and the surrounding areas.  It will affect prime mansion blocks, mixed use schemes and newly constructed high value estates.  With this being a new system to the UK, buyers will not be ofay with the new regime and lenders may have a limited appetite in this area at first.

The proposed new commonhold regime is intended to reduce long-term costs and improve transparency by removing ground rent, landlord profit and complex leasehold management structures, although there may be upfront costs associated with conversion, valuation, lender consent and the establishment of a commonhold association. Ongoing costs are expected to consist primarily of service charge contributions to meet actual maintenance, insurance and reserve fund requirements, controlled directly by unit owners rather than a third-party freeholder.

Governance is vested in the commonhold association, a company limited by guarantee owned and democratically run by the unit holders, with decision-making governed by the commonhold community statement. This provides a clear statutory framework for voting, budgeting and dispute resolution, enhancing accountability while reducing scope for abuse and opaque charging practices seen in traditional leasehold arrangements.

Key Proposals for Change

Flexibility in Management: The introduction of “sections” within commonhold developments will allow different areas or groups of units to be managed separately. This will be crucial in mixed-use buildings and complex estates, enabling CA’s to fairly apportion costs and limit voting to specific decisions which just affect those areas or groups of units.  This will work well where there are a number of commercial units dispersed amongst a building with residential apartments incorporated, such as the Shard or One Hyde Park.

Financial Protections: New rules will mandate reserve funds to mitigate unexpected costs, and unit holders will have a greater say in budgeting decisions. The ability to challenge excessive expenditure will help keep commonhold developments financially sound.

Improved Dispute Resolution: The current process for resolving disputes between unit holders will be streamlined, with less paperwork and more accessible processes through tribunals, aiming to prevent costly court procedures.

Stronger Minority Protections: Measures to prevent majority owners from unfairly imposing decisions will be introduced, allowing minority unit holders to challenge certain decisions at the tribunal.

Debt Recovery and Enforcement: In response to concerns about unpaid debts in the absence of a landlord, the government proposes that CA’s will be able to apply to the court for an expedited order to sell a unit if the owner fails to pay their share of costs. There will also be safeguards, including protections for lenders, such as ability to control the sale process or add debt to the mortgage.

Winding Up Commonhold: The White Paper proposes improving the voluntary termination process for commonhold developments, ensuring owners have a chance to vote, and safeguard the interests of all parties when a commonhold development becomes insolvent.

Converting Leasehold to Commonhold: A crucial area of reform still under consideration is the process for converting existing leasehold properties to commonhold, including addressing the issue of non-consenting leaseholders. This is an area where further consultation and legislative proposals are expected. The current Act requires 100% participation at present however, the Bill proposes to allow conversion to commonhold with a majority of leaseholders, proposed as 50% subject to final legislation.

The Road Ahead

Although a new concept to England and Wales, forms of commonhold have long since operated in many jurisdictions, although the terminology and legal structures vary. Australia and New Zealand operate strata title systems, while Canada (notably British Columbia and Ontario) uses condominium ownership. In the United States, condominiums and common interest developments perform a similar role, as do sectional titles in South Africa. Across Europe, comparable regimes include Copropriété in France, Wohnungseigentum in Germany and Austria, Propiedad Horizontal in Spain, and apartment ownership systems in the Netherlands and the Nordic countries. In each case, individual owners hold a proprietary interest in their unit together with shared ownership and democratic governance of common parts, broadly reflecting the core principles of commonhold.

The Bill lays the foundation for substantial reforms in commonhold law. The success of these changes will depend on the outcome of the pre-legislative scrutiny.  The government’s consultation with the industry closed on 24 April 2026, so we await the government’s response on scope, timing, exemptions and transitional arrangements.  The final Bill is likely to be introduced into Parliament in late 2026 and the earliest date it will be come law is 2027 to 2028.

Commonhold could present an opportunity to move away from the complexities and costs associated with leasehold ownership. However, the real challenge lies in the transition. Commonhold developments will require careful management from the outset, and a well-thought-out approach will be essential to avoid the pitfalls that plagued the leasehold system.  It could allow standardised documentation which would speed up and aid the negotiation process.

So far commonhold has failed to take off, since the Act was implemented in 2002 fewer than 20 developments have been built comprising fewer than 200 commonhold units.  As a Real Estate lawyer there is a real fear about committing clients to this system, until the market and particularly lenders are on board with this new style of ownership.

This legislation is of course in line with the government’s wider reform in the leasehold sphere, the proposal to cap ground rents, measures to address unfair costs and practices, and the abolition of marriage value. 

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Caroline using the details below. 

 

Why Climate Risks Matters in UK Property? 

Climate risks are increasingly affecting residential property in tangible ways:

• Increased flood risk and extreme weather events
• Rising insurance premiums—or reduced availability of cover
• Tighter environmental and planning regulations
• Changing lender and investor requirements

These factors can directly impact property value, marketability, and long-term viability.

Key Climate Issues in Property Transactions

When buying, selling, or developing property, climate considerations are becoming a core part of due diligence. Clients should be aware of:

• Flood risk: Not just rivers and coasts, but also surface water flooding
• Energy efficiency: Minimum Energy Efficiency Standards (MEES) continue to tighten
• Searches and reports: Enhanced environmental and climate risk searches are increasingly recommended
• Insurance: Availability and affordability may vary significantly depending on location

Early identification of these issues can prevent delays and unexpected costs later in the transaction.

Planning and Development Pressures from Climate Change

Planning policy is evolving rapidly in response to climate targets. Developers in particular should consider:

• Restrictions on building in high-risk areas
• Sustainability and net-zero requirements
• Biodiversity net gain obligations
• Increasing expectations around climate resilience

These requirements can affect both project timelines and overall feasibility.

Lender and Investor Focus

Financial institutions are placing greater emphasis on climate risk:

• Lending decisions increasingly reflect environmental exposure
• Investors are favouring sustainable, energy-efficient assets
• Climate disclosures are becoming more detailed and expected

This means climate considerations are now central to funding and investment strategies.

Looking Ahead

As climate change continues to shape the property market, proactive legal advice is more important than ever. Whether you are acquiring, developing, financing, or managing property, understanding these risks—and opportunities—will be key to protecting long-term value.

To find out more, contact our Residential Real Estate Team.

What is the Renter’s Rights Act Information Sheet? 

The Government’s Information Sheet has now been published, see the prescribed guidance in the following link:

The Renters’ Rights Act Information Sheet 2026

The Information Sheet is designed to provide existing assured tenants with a clear explanation of how their rights and tenancy structures will change from 1 May 2026.

The Information Sheet sets out:

• The transition from fixed-term tenancies to the new periodic tenancy system.
• The end of Section 21 no‑fault evictions, and the protections replacing it.
• Updated rent increase rules, possession grounds, and the strengthened rights of tenants to challenge unfair practices.
• Routes for obtaining support or making complaint.

It is in a prescribed form and it must not be altered.

 

Who Must Receive the Renter’s Rights Act Information Sheet? 

It needs to be sent by private rented sector landlords to all assured and assured shorthold tenants, whose tenancies commenced or will commence prior to 1 May 2026.

It must be sent prior to 31 May 2026 and Government guidance is to serve it as soon as possible to avoid potential non-compliance and penalties being imposed.

It does not need to be given it to lodgers but a copy must be given to every tenant named on the tenancy agreement.

For HMOs or shared households, each tenant must receive the sheet individually unless they share a single written agreement.

If a landlord has a letting agent who manages the property on their behalf, the letting agent must also provide the Information Sheet to the tenant, even if the landlord has also provided it.

 

How Should the Renter’s Rights Act Information Sheet Be Provided? 

It must be provided to the tenants by either printing a hard copy, which is posted or given to the tenants by hand or by sending the PDF electronically as an attachment, for example, to an email or text message.

For those tenancies which have yet to be entered into but are due to commence before 1 May 2026, the Information Sheet should be provided at the point of completion of the new tenancy.

Any verbal tenancy agreements, need to be formalised in writing by a landlord and tenant.

 

What Happens If Landlords Fail to Comply to send the Renter’s Rights Act Information Sheet? 

If you fail to serve the Information Sheet, this is treated as a breach of the landlords’ statutory duties under the Renters’ Rights Act 2025 and the following penalties may ensue:

• Civil penalties starting at around £4,000, rising to £7,000;
• Continued non‑compliance beyond 28 days after a penalty may escalate to a criminal offence, with fines up to £40,000 or prosecution in serious cases.

 

New forms published for use post 1 May 2026

The Government has also published draft versions of a number of the forms to be used as amended by the Renters’ Rights Act 2025 after 1 May 2026.

They include the new Notice of Seeking Possession, the new statutory rent increase notice Form 4A etc and we would encourage all landlords to review the new forms so they are ready to start using the same after 1 May 2026 in relation to private rented sector stock.

To find out more, please contact our Residential Real Estate team.

A consultation of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has recently closed and has sought views on proposals to amend these regulations to implement higher minimum energy efficiency standards in the private rented sector.

The Government confirms it will pursue amendments to these regulations to introduce higher minimum energy efficiency standards. These two standards are as follows:

1. A primary standard based on the building’s fabric; and
2. A secondary standard based on either the heating system or a smart metric.

Landlord will be free to choose which secondary metric to apply giving flexibility to retain existing heating systems or adopt alternative technologies such as solar or smart controls. The Government’s view is that the dual metric approach preserves tenant bills, savings and carbon reductions at a lever comparable to the existing EPC “C” proposal while avoiding the situation where landlords are penalised for installing low carbon heating such as heat pumps.

Landlords will be required to invest £10,000 per property on relevant energy efficiency improvements to bring the property up to standards. Where improvements costing up to this limit still do not bring the home to the required standard, the landlord may register an exemption lasting 10 years and continue to let the property during this time. When an exemption expires, the landlord must again carry out the energy efficiency works to attempt to meet the standards. The £10,000 limit is the maximum investment expected from a landlord over a 10 year period.

Landlords must take this into account when looking at their portfolio over the forthcoming years to upgrade EPC standard levels.

 

If you have any questions, or want to find out more contact the Residential Property team. 

Source of funds enquiries are not discretionary. They are designed to protect buyers, solicitors, lenders and the wider property market, and failure to address them properly can result in delay or, in some cases, an inability to proceed.

What Is Meant by “Source of Funds”?

“Source of funds” refers to the origin of the monies being used to purchase a property. This may include, for example:

• Mortgage funds provided by a lender
• A financial gift from a family member
• An inheritance
• Proceeds from the sale of another property or asset
• Investment or dividend income
• Personal savings accumulated over time

As residential property solicitors, we are required to obtain clear documentary evidence to verify the legitimacy of these funds. The nature of the evidence required will depend on each client’s circumstances but commonly includes bank statements, probate documentation, completion statements, investment records or formal gift letters.

Why Are Source of Funds Checks Required?

Anti-Money Laundering Compliance – Solicitors are subject to strict anti-money laundering legislation. Property transactions can be vulnerable to misuse by those seeking to conceal or legitimise the proceeds of crime. Carrying out robust source of funds checks is essential to comply with these regulations and to uphold the integrity of the residential property market.

Protecting Buyers and Their Investment – These checks are also in the buyer’s own interests. Where property is purchased using funds later linked to criminal activity, enforcement authorities may have powers to recover the asset, even where the buyer was unaware of any wrongdoing. Proper verification at the outset significantly reduces this risk.

Managing Transactional Risk and Delay – If satisfactory evidence of funds is not provided, a transaction may be delayed or prevented from progressing. Addressing source of funds requirements early, and providing clear documentation promptly, helps ensure that the conveyancing process runs smoothly.

What Evidence May Be Requested?

Depending on the circumstances of the transaction, buyers may be asked to provide:

• A signed gift letter together with supporting bank statements from the donor
• Investment or shareholding statements
• A completion statement from the sale of a property
• A grant of probate or confirmation from executors where funds derive from an inheritance
• Recent bank statements demonstrating the build-up of savings

How You Can Assist the Process

To minimise disruption and delay, buyers are encouraged to:

• Retain copies of all relevant paperwork
• Avoid unnecessary transfers between accounts, which can complicate the audit trail
• Provide requested documentation promptly
• Be open and transparent about the origin of their funds

Final Thoughts

Source of funds checks are an essential and unavoidable part of any residential property transaction. While they can feel onerous, they are in place to ensure compliance with legal obligations, protect buyers, and safeguard the transaction as a whole.

Behind every title plan and contract pack sit legal risks that, if missed, can cause delay, unexpected cost, or long-term problems with your property. As residential real estate solicitors, our role is to ensure that your transaction completes smoothly while protecting you from those hidden risks.

Residential Work Is Not Just Form Filling

Residential work is sometimes perceived as an administrative exercise. In fact, it is a legal process that requires careful analysis and informed judgement.

Common issues that arise in residential transactions include:

• Defective or missing rights of way
• Boundary discrepancies and unregistered land
• Leasehold restrictions, escalating ground rent, or inadequate management arrangements
• Planning or building regulation breaches
• Restrictive covenants that affect future use or value

Identifying these issues early — and knowing how to resolve or mitigate them — can make the difference between a successful completion and a failed transaction, which none of us want.

The Risks of a “Low Cost” Approach

Many buyers and sellers are drawn to online or volume conveyancing providers offering low headline fees but with hidden extra costs on completion. While cost is always a consideration, it is important to understand what you may be sacrificing.

High-volume providers often operate with limited solicitor involvement, heavy caseloads, and minimal continuity. This can result in:

• Slow response times
• Missed legal issues
• Little strategic advice when problems arise
• Increased stress at critical stages of the transaction

Residential property transactions frequently move at pace. Having a solicitor who is accessible, proactive, and accountable is invaluable.

What a Specialist Residential Property Solicitor Adds

Instructing a specialist residential real estate solicitor means you benefit from:

• Clear, practical advice, explaining legal issues in plain English and setting out realistic options
• Early risk identification, spotting title or lease problems before they become expensive
• Strategic negotiation, dealing with counterpart solicitors, managing agents, and lenders efficiently
• Transaction management, keeping the process moving and anticipating potential delays

Whether you are a first-time buyer, an experienced homeowner, or a property investor, tailored advice is key.

Leasehold Properties: A Particular Area of Risk

Leasehold transactions deserve special care. Issues such as short lease terms, onerous ground rent clauses, inadequate service charge provisions, or poor management can materially affect both mortgageability and resale value.

A thorough lease review is not optional, it is essential. Buyers should understand exactly what they are committing to, not just now but for the life of their ownership.

Residential property transactions involve more than just buyer and seller. Estate agents, managing agents, lenders, surveyors, and freeholders all play a role.

Local Knowledge and Professional Relationships Matter. An experienced solicitor brings established professional relationships and an understanding of how to resolve issues pragmatically, rather than allowing them to stall progress.

Choosing the Right Solicitor

When choosing a residential real estate solicitor, clients should ask:

• Will a qualified solicitor be responsible for my matter?
• How accessible will my solicitor be?
• What experience do they have with properties like mine?
• How will issues be raised and explained to me?

Peace of mind comes from knowing your transaction is being handled with care and expertise.

Final Thoughts

Your home is likely one of your most valuable assets. Whether buying, selling, or refinancing, it is worth ensuring that the legal work is done properly.

If you are considering a residential property transaction and would like clear, experienced advice, speaking to a specialist residential real estate solicitor at an early stage can save time, cost, and stress later on.

We act for London Estates, house builders, developers and a range of other parties in the residential sector including HNW and UHNW individuals in the luxury real estate market. Our clients are based across the UK, Europe, America, Middle East and Asia and we regularly advise international clients on their inbound related needs.

1. Abolishment of Fixed-Term Assured Shorthold Tenancies (ASTs) – All tenancies will become periodic, allowing tenants to give two months notice to end a tenancy at any time from the commencement of the tenant.
2. Limit on Rent Increases – The shift to periodic tenancies means that Section 13 notices will be the only way for landlords to raise the rent’ these can only be served once per year, and must be in the correct prescribed format.
3. Abolishment of Section 21 Evictions – Landlords will no longer be able to serve “no-fault) eviction notices to regain possession of their properties. From 1st May 2026, no further Section 21 Notices can be served. Notices can be served prior to 1st May 2026 but must be enforced by 31st July 2026.
4. Expansion of Section 8 Possession Grounds – The Government is adding and updating both mandatory and discretionary grounds for possession due to the abolition of Section 21 Notices from 1st May 2026, these notices will be the only way to regain possession of a property should the tenant not give notice to vacate.
5. Introduction of a Landlord Ombudsman (mandatory membership for all landlords) – This will help resolve disputes between landlords and tenants impartially. Landlords will be expected to join this scheme in 2028, although this is still to be confirmed by the Government in terms of timescales.
6. Creation of a Private Rented Sector Database (mandatory registration for all landlords) – Designed to compile information about landlords and properties and provide visibility on compliance. Landlords will be expected to register on the database toward the end of 2-26, although this is still to be confirmed by the Government in terms of timescales.
7. Application of the Decent Homes Standard and Awaabs Law to the Private Rented Sector – All rental properties must meet minimum quality standards. The application of this is still to be confirmed by the Government in terms of timescales, however, this is proposed under Phase 3 of their implementation plan to be in 2035 or 2037.
8. Prohibiting Discrimination – Landlords cannot refuse tenants on benefits or with children.
9. Allowing Renting with Pets – Landlords cannot unreasonably refuse tenants with pets.
10. Ban on Rental Bidding – Landlords and agents cannot accept offers above the advertised price.
11. Banning of Rent in Advance – Tenants will no longer be able to be asked to pay rent in advance.
12. Student Charges – Properties must be let exclusively to full time students and possession can only be gained using a Section 4A notice. Student tenancies will be periodic from the outset, with two months required from the tenants should they wish to end the tenancy.
13. Notice Changes for Landlords Selling Properties – Landlord must serve 4 months notice on tenants (not to expire within the first 12 months of a tenancy) to regain possession of a property in order to sell. The property cannot be subsequently re-let within 12 months of the expiry of such a notice in the case of a sale falling through, or being withdraw from the sales market.

This pace of change will be fast over the next year and landlords, courts and local authorities will need to adapt quickly so this sector can flourish once again. The hope is landlords are not put off by such changes and will re-join the market to grow it once again.

What is the intention of the Commonhold White Paper?

The aim is to make commonhold the default tenure for apartments going forward.  With this white paper, the Government intends to replace the traditional leasehold format with a more revitalised format allowing owners to jointly own and manage their building.

Furthermore, the aim is to make it easier for existing leaseholders to transition their building to commonhold by reducing the percentage of owners needed to agree.

What will happen to existing leaseholds?

It’s not an immediate, blanket ban on all existing leaseholds.  The Leasehold and Freehold Reform Act 2024 (now law) bans the creation of most new leasehold houses — meaning almost all new houses in England and Wales must be sold freehold instead of leasehold.

Existing leasehold homes are not being automatically abolished. Owners of existing leasehold flats and houses will still hold leaseholds, though reforms seek to improve their rights and protections and make it easier to convert to commonhold voluntarily.

Developers can still grant new leases in certain scenarios (e.g., replacements for expiring leases) until the formal ban on new leasehold flats comes into force.

What is the benefit of commonhold ownership?

In practical terms, here are the main benefits:

• You truly own your home (no ticking clock)

With commonhold, you own your flat outright and forever — there’s no lease that runs down over time, and no need (or cost) to extend it later. That alone removes a big source of stress and expense.

• No external landlord / freeholder

There’s no separate freeholder making profit from the building. Instead:

• Each flat owner owns their own unit
• All owners jointly own and control the building through a commonhold association

So decisions are made by the residents, not an outside investor.

• Fairer service charges

Because residents run things themselves (or appoint managing agents they choose):

• Service charges are based on actual costs, not profit
• Charges are more transparent
• You have real voting power over budgets and major works

This helps avoid issues like inflated fees or unnecessary projects.

• No ground rent

Commonhold has zero ground rent. That’s a big win compared to leasehold, where ground rent can exist even though you get nothing in return.

 

What next?

The consultation period end in April 2026 and further update will be expected then.

 

To find out more speak with Asha Ngai, or the Residential Property team.