What Bournemouth & Poole.Landlords Need to Know About the 2026 Reform Bill

The landscape for property investors in Dorset is shifting once again. On 27 January 2026, the government published the draft Commonhold and Leasehold Reform Bill, marking the most significant shake-up to flat ownership in a generation.
For landlords in Bournemouth and Poole—hubs for purpose-built blocks and converted flats—this Bill is a "sequel" to the 2024 Act, and it carries some heavy-hitting changes. Here is the breakdown of what is on the horizon.

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1. Commonhold is the New Default
The headline change is the phase-out of leasehold for new-build flats. Moving forward, Commonhold will be the default tenure.

• The Impact: Instead of owning a lease granted by a freeholder, owners will have "unit ownership" and a share in a Commonhold Association.
• For Investors: If you are looking at off-plan investments in the regeneration zones of Lansdowne or Poole Quay, expect these to be commonhold titles rather than traditional 999-year leases.

2. The Ground Rent "Squeeze"
Ground rent has long been a predictable (if often small) cost for leaseholders and an income stream for freeholders. The 2026 Bill proposes:

• A £250 Cap: Existing ground rents will be capped at £250 per year.
• The Peppercorn Pivot: 40 years after the Act commences, these rents will drop to a "peppercorn" (zero) rate.
• The Upside: If you own leasehold buy-to-lets with doubling ground rent clauses, your overheads are about to get a lot more predictable.

3. Easier Conversions (The 50% Rule)
Currently, converting a building to commonhold is notoriously difficult. The Bill slashes the required consent threshold to just 50% of leaseholders.

• Why it matters: This makes "Right to Manage" and collective enfranchisement much easier. If you own a flat in a block where the freeholder is negligent, you and your fellow leaseholders now have a much smoother path to taking control.

4. Forfeiture is Out, Proportionate Enforcement is In
The "draconian" threat of forfeiture—where a freeholder could theoretically seize a flat over unpaid service charges—is being abolished. It will be replaced by "proportionate enforcement." This levels the playing field for leaseholders, ensuring that minor disputes don't lead to the loss of a high-value asset.
5. Cheaper Lease Extensions
Building on the 2024 Act (which already scrapped "marriage value"), the 2026 Bill aims to make extending leases or buying freeholds even cheaper. This is a massive win for those holding "short" leases (under 80 years) in Bournemouth’s older Victorian conversions, as the cost to "top up" the lease will likely fall significantly.

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The Verdict for Local Landlords
This Bill is a clear signal that the government wants to move away from the "landlord and tenant" relationship in flat ownership.

Expert Note: While these reforms make owning a flat simpler and cheaper in the long run, the transition period can be complex. Valuation changes may affect the "re-sale" value of freeholds, but for the average buy-to-let landlord, the reduction in ground rent and cheaper lease extensions are welcome news.

What’s next? The Bill is currently under "pre-legislative scrutiny." We expect debates on how freeholders will be compensated for the loss of ground rent income, which may lead to some tweaks before it becomes law.