Rates went up, the leasehold clock started ticking, and a new bill puts freeholders of taller blocks on the hook for cladding. Here is the week, in five minutes.
FinanceBase rate rises to 4%
The Bank of England lifted the base rate from 3.75% to 4% on 5 November. Eight of the nine rate setters voted for it, and one wanted 4.25%. September inflation at 3.5% and energy costs were the reasons given.
Why it matters for block ownersMoneyfacts figures show average three-year buy-to-let fixes up from 4.16% to 5.54% since late February, and lenders quoted said there is no reason to expect costs to stop rising now. If a block is on a tracker or due to refinance, run the numbers at today's rates, not last year's.
Source: Mortgage Solutions (5 November 2026) · Mortgage Solutions (5 November 2026)
LeaseholdService charge reform: the clock has started
The first slice of the service charge shake-up came into force on 6 November. It only gives the government the power to write the detailed rules, so nothing changes on your demands yet, and at least five more sets of regulations are still to come.
Why it matters for block ownersFrom 1 April 2027, advance notice of some future costs must be given in a set format, and legal costs in new cases mostly cannot go through the service charge without a tribunal or court agreeing. From 1 November 2027 come standard demand forms, separate yearly accounts and a yearly report, and limits on insurance commission. If your block has long leases, check your managing agent can produce all that.
Source: Prince Surveyors (6 November 2026)
LeaseholdThe big leasehold bill is due before Christmas
The government confirmed on 2 November that the Commonhold and Leasehold Reform Bill will go before Parliament before the end of this year. January's draft would cap ground rent on existing flat leases at £250 a year, falling to nothing after 40 years. MPs on the Housing Committee want the cap to start in 2027 and the wind-down to take 20 years, not 40.
Why it matters for block ownersIf you title split and sell flats on long leases, treat ground rent as worth little or nothing and value the deal on the flats alone. Separately, the consultation on the rates used to price lease extensions closed on 21 October with no result yet.
Source: GOV.UK (2 November 2026) · Charles Russell Speechlys · Prince Surveyors (1 November 2026)
Building safetyNew cladding bill puts freeholders on the hook
The Building Safety (Remediation of Unsafe Cladding etc) Bill, debated in the Commons on 27 October, would create a legal duty to fix unsafe cladding on residential blocks of 11 metres or five storeys and up. The duty falls on whoever has to repair the outside walls, which is often the freeholder.
Why it matters for block ownersOwners would have to assess the walls, publish a plan within 15 months of the bill becoming law, and fix problems as soon as reasonably practicable. Penalties run up to £500,000 or prosecution, with a defence for owners acting in good faith. Most small blocks sit below 11 metres, but measure yours, and measure before you buy.
Source: Walker Morris (15 October 2026) · Hansard (27 October 2026)
TaxHigher tax on rent if you own in your own name
The 28 October Budget added two more percentage points to income tax on property income from April 2027, on top of last year's rise. Reported rates are 24%, 44% and 49%, though full details were still to be confirmed. It covers England, Wales and Northern Ireland.
Why it matters for block ownersLender Landbay says the rise applies to property held personally, not through a limited company. If you hold blocks in your own name, it is worth a conversation with your accountant about whether your set-up still works for you.
Source: Property118 (28 October 2026)
LendingTwo lenders sharpen their block mortgages
Fleet Mortgages launched five-year fixes with a 5% fee at up to 75% of the value, priced at 5.49% for HMOs and blocks with £1,000 cashback. LendInvest launched trackers with a 4% fee for small blocks, among other types, at up to 75% with no early repayment charges.
Why it matters for block ownersA tracker with no exit penalty leaves you free to refinance or sell after a title split without paying to get out. A big fee buys a lower rate, so compare the total cost over the years you will hold, not the headline rate.
Source: The Intermediary (3 November 2026) · The Intermediary (2 November 2026)