The House of Commons Library has just released a report on the Leasehold and Freehold Reform Act 2024 – the report can be seen here. and in summary:

Overview

• The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024, fast-tracked before the general election.

• It applies to England and Wales.

• Builds on commitments from the 2017 Housing White Paper and Law Commission leasehold reform recommendations (2020).

• Aims to improve fairness, transparency, and consumer rights for leaseholders and freeholders.

Key Provisions

For Leaseholders

1. Cheaper, Easier Lease Extension / Freehold Purchase

   • Removes marriage value from valuation.

   • Extends lease terms to 990 years with peppercorn ground rent.

2. Expanded Eligibility

   • More leaseholders can:

     • Extend leases

     • Buy freeholds

     • Exercise Right to Manage (RTM)

3. Ban on New Leasehold Houses

   • New leasehold houses prohibited (with limited exceptions).

4. Greater Transparency

   • Service charges: right to request detailed info.

   • Administration charges and buildings insurance commissions must be clearer.

5. Legal Costs Reform

   • Ends presumption that leaseholders must pay the landlord’s legal fees in disputes.

   • New right to apply to claim costs from the landlord.

6. Access to Redress

   • Extends redress scheme access where freeholders manage the building directly.

7. Faster Sales Process

   • Requires timely provision of property sales information.

For Freehold Homeowners on Estates

• Improved rights on private and mixed-tenure estates (details on casework page).

• Government plans further consultation in 2025 to address this group more comprehensively.

Implementation Timeline

While the Act has Royal Assent, many provisions are not yet in force. They require secondary legislation and consultation.

Already in Force

• 31 Jan 2025: Leaseholders no longer need to wait two years to extend lease/buy freehold.

• 3 Mar 2025: New RTM regulations took effect, expanding access and ending liability for landlord’s legal fees.

In Progress

• Summer 2025: Consultation on valuation rates (to replace marriage value).

• Until 26 Sep 2025:

  • Consultation on regulating managing agents and introducing mandatory qualifications.

  • Consultation on leaseholder protections over charges and services.

• Building insurance transparency consultation closed Feb 2025 – results pending.

Looking Ahead: Future Legislation

Draft Leasehold and Commonhold Reform Bill (Expected Late 2025)

To be subject to consultation and scrutiny, this bill would:

• Complete remaining Law Commission leasehold reforms.

• Revive commonhold as the default flat ownership model.

• Regulate ground rents for existing leaseholders.

• End forfeiture as a remedy for breach of lease.

• Strengthen freeholder rights on mixed estates.

A Commonhold White Paper (March 2025) outlines reforms needed to make commonhold viable and mainstream.

Leasehold Reform in Wales

• Most LFRA 2024 provisions apply in Wales.

• Welsh Government will implement through subordinate legislation.

• Committed to Law Commission reforms in Programme for Government 2021–26.

Context

The LFRA 2024 follows the Leasehold Reform (Ground Rent) Act 2022, which ended ground rents for most new leaseholds. The 2024 Act builds on that by tackling existing leaseholds, management practices, and access to redress.

Further information

Library briefing: Leasehold and Freehold Reform Bill 2023-24: Progress of the Bill

Library briefing: Leasehold and Freehold Reform Bill 2023-24

Library briefing: Leasehold and Commonhold Reform

Gov.uk: Guide to the Leasehold and Freehold Reform Bill