Following significant recent reforms of renters’ rights effective from 1 May and the enactment of a ban on upwards only rent reviews (although a date for implementation is awaited), the King's Speech on 13 May 2026 set out the Government’s proposals for further legislation affecting the real estate sector summarised below.

Commonhold and Leasehold Reform Bill

As we reported in our alert on 9 February, January saw the introduction of a draft Commonhold and Leasehold Reform Bill. The draft Bill includes measures to ban leaseholds for most new flats and to introduce a new commonhold regime for flat ownership in their place. Ground rents for most existing long residential leases would be capped at £250 per annum, falling to a peppercorn after 40 years. The Bill would also abolish forfeiture for long residential leases, replacing it with a different enforcement mechanism for breaches of tenant obligations. The Housing, Communities and Local Government Committee is undertaking pre-legislative scrutiny of the draft Bill. Any recommendations it makes to be reviewed by the Government before the Bill is formally introduced to Parliament. Additional measures have been proposed which would make it cheaper and easier for leaseholders to extend leases or acquire the freehold and create new rights for leaseholders of flats to request improvements such as a gigabit-capable broadband connection.

Building Safety Remediation

A Remediation Bill relating to buildings with residential flats is to be introduced. It will include measures obliging construction product manufacturers to pay towards fixing problems they have caused, equipping regulators with powers to compel action to remedy unsafe cladding and establishing a new register for buildings between 11 and 18 metres in height so that all remaining buildings that require remediation work can be identified. Where responsible parties fail to act, a third party such as Homes England would be empowered to step in and carry out remediation work directly. The Government has indicated that the Bill will address gaps in previous legislation to protect residents and guarantee a route to remediation. The majority of the measures will only apply in England.

Commentary

In terms of impact on the real estate industry, the proposed Remediation Bill is expected to add another layer of regulatory pressure and compliance obligations across the real estate sector for developers, landlords, housing associations and investors involved in medium rise and higher-risk residential buildings. The legislation is designed to accelerate the remediation of unsafe cladding and fire safety defects, with the Government signalling tougher enforcement powers, mandatory assessment requirements and potential criminal penalties for parties that fail to act quickly enough. Industry groups have warned that, while improving resident safety is essential, the bill could create additional “red tape” through more extensive external wall assessments, stricter audit processes, enhanced reporting obligations and greater legal exposure for building owners and developers. The sector is also still adjusting to the significant regulatory and operational burdens introduced under the Building Safety Act 2022, which fundamentally reshaped accountability, compliance and oversight requirements. Therefore, the risk is that the cumulative effect of further regulation may slow housing delivery and increase transaction uncertainty at a time when the market is already struggling with viability pressures and delays linked to building safety approvals.