The Commonhold and Leasehold Reform Bill: A new era for residential lease enforcement

Proposals for far-reaching reforms to residential lease enforcement have been unveiled by the government.

At its heart, the draft Commonhold and Leasehold Reform Bill removes forfeiture as an enforcement tool for long residential leases and replaces it with a new, court-controlled enforcement process.

Simeon McKenzie, Solicitor in Thrings’ Property Litigation team, takes a look at the draft bill and the impact it could have for landlords, managing agents and leaseholders facing disputes.

The end of forfeiture

Under the current system, breach of a lease covenant can ultimately lead to forfeiture, essentially the termination of the lease. Even where it is unlikely to succeed, the threat of forfeiture has long been a powerful enforcement tool.

The Bill abolishes this entirely for long residential leases. Once in force:

• A residential long lease can no longer be terminated for breach of covenant: and
• Any lease clause allowing forfeiture, re-entry or conditional termination will be unenforceable.

For leaseholders, this removes the risk of losing their home due to a dispute. For landlords, it represents a fundamental shift away from leverage-based enforcement towards court-supervised remedies.

What would replace forfeiture?

In the draft Bill, forfeiture would be replaced by a new statutory process known as a “Lease Enforcement Claim”. Instead of terminating a lease, a landlord would be able to apply to the court for an appropriate remedy for breach of covenant, such as an order requiring compliance, payment, or another form of relief. What the court cannot do, however, is bring the lease to an end.

Importantly, under the proposals landlords will not be able to take enforcement shortcuts. Claims must pass through a series of formal steps before reaching court, with judges having greater control over what remedies are appropriate.

Requirements for lease enforcement claims

Perhaps the most important change in the proposed reforms is that landlords would be required to meet strict conditions before they can bring an enforcement claim. These include:

• Seriousness threshold: In many cases, the landlord must show that the breach is one that would previously have allowed forfeiture.
• Clear warning: The tenant must first be given a formal explanatory statement setting out the enforcement process.
• No excluded breaches: Certain matters are excluded altogether, including ground rent arrears, insolvency-related breaches, and breaches linked to death or incapacity.
• Financial limits: For money claims (other than ground rent), enforcement is only available if arrears exceed a minimum financial threshold or have persisted for a specified period.
• Proof of breach: The tenant must either admit the breach in writing or the landlord must obtain a final determination from a court or tribunal.
• Enforcement notice: A formal lease enforcement notice must be served, followed by a minimum waiting period of 28 days.

Only once all of these steps are completed would a landlord be able to ask the court to impose a remedy.

What this means

For landlords and managing agents, enforcement is likely to become slower, more structured, and more procedural. Straightforward remedies may still be available, but low-level or technical breaches will be harder to pursue, and careful planning will be essential. Early legal advice will increasingly be needed to avoid missteps that could delay or derail enforcement altogether.

For leaseholders, the changes are far-reaching. The risk of losing a lease because of a breach disappears entirely, and tenants will have multiple opportunities to challenge enforcement before court proceedings are even possible. The emphasis shifts away from punishment and towards resolution.

More broadly, residential property disputes are likely to feel different. There will be fewer “all-or-nothing” outcomes, greater focus on proportionality and compliance, and a stronger push towards negotiation and early dispute resolution. The new regime is designed to cool down disputes, not escalate them, marking a drastic shift in how residential lease enforcement will operate going forward.

Simeon McKenzie, Solicitor in Thrings’ Property Litigation team, said: “The draft bill marks a decisive move towards a more controlled, transparent enforcement system for long residential leases. While this will provide greater security for leaseholders, it also places new procedural and evidential burdens on landlords.

“For anyone involved in residential property disputes the message is clear: lease enforcement is about to become more structured, more regulated, and more dependent on getting the legal groundwork right from the outset. These proposed reforms are likely to change as the Bill progresses through Parliament, but it is important for landlords to seek legal advice early on and ensure they understand and are compliant with any new legislation by the time it comes into force.”

Thrings’ Property Litigation lawyers are experienced in reaching resolution in property disputes, acting for both landlords and tenants, often without recourse to court proceedings, and with an excellent track record when cases do go to Court. To find out more, get in contact.