The House of Commons library has released a report of leasehold reform.  It can be seen here, and in summary:

Leasehold and Freehold Reform Act 2024: A Landmark Shift for Homeowners

The Leasehold and Freehold Reform Act 2024 received royal assent on 24 May 2024, marking a significant step in reshaping property ownership in England and Wales. The act was fast-tracked through its final parliamentary stages in the wash-up period before the 2024 general election, reinforcing the government’s commitment to improving fairness and consumer choice in leasehold ownership.

Strengthening Leaseholders’ Rights

The act aims to enhance leaseholders’ rights and simplify property transactions by:

• Making it cheaper and easier for leaseholders of both houses and flats to extend leases or purchase their freehold, including the removal of marriage value from cost calculations.
• Extending standard lease terms to 990 years, with ground rents reduced to a nominal peppercorn rate.
• Expanding eligibility criteria, granting more leaseholders the right to extend leases, acquire freeholds, and assume building management.
• Banning new leasehold houses, except in specific cases.
• Increasing transparency around service charges, administration fees, and buildings insurance commissions.
• Removing the presumption that leaseholders must pay their landlord’s legal costs when contesting unfair practices.
• Expanding access to redress schemes for leaseholders in directly managed properties.
• Ensuring that key property sales information is provided to leaseholders promptly.

Implications for Freehold Homeowners

The act also benefits freeholders on private and mixed-tenure estates by strengthening their rights regarding estate management fees and transparency. Further details are outlined in the Library’s constituency casework on Freehold estate management.

Implementation Timeline

Although the act is now law, most provisions are yet to take effect. Many require further consultation and secondary legislation. The Labour government has pledged to implement the reforms “as quickly as possible” while ensuring thorough scrutiny and effective execution.

Housing Minister Matthew Pennycook provided an update on 21 November 2024, detailing the implementation roadmap. He acknowledged the identification of some legislative flaws requiring future amendments.

Progress to Date

• Buildings Insurance Transparency Consultation: Launched to address concerns over hidden costs. Closes 24 February 2025.
• Waiting Period Removal: Regulations enabling leaseholders to extend leases or buy freeholds without a two-year waiting period took effect on 31 January 2025.
• Right to Manage (RTM) Provisions: Expanded eligibility and abolished freeholders’ legal cost claims in RTM cases. Effective from 3 March 2025.

The government also plans a Summer 2025 consultation on statutory lease extension and freehold acquisition costs, excluding marriage value, with rates to be determined via secondary legislation.

The Future: Leasehold and Commonhold Reform Bill

Further change is on the horizon. The King’s Speech 2024 reaffirmed the government’s intent to abolish the feudal leasehold system. A draft Leasehold and Commonhold Reform Bill is expected in the second half of 2025 for public and parliamentary review.

Key proposed measures include:

• Strengthening leaseholder rights to extend leases, buy freeholds, and manage buildings.
• Exploring restrictions on the sale of new leasehold flats.
• Reviving commonhold tenure as an alternative to leasehold, with legal framework modernisation and a 2025 white paper on commonhold reform.
• Regulating ground rents for existing leaseholders.
• Abolishing forfeiture as an enforcement mechanism for lease agreements.
• Enhancing protections for freehold homeowners on private estates, with consultations planned for 2025.

Additionally, the government aims to strengthen property managing agent regulation, with a consultation set for 2025.

Conclusion

The Leasehold and Freehold Reform Act 2024 is a milestone in property ownership reform, offering greater rights, transparency, and affordability for leaseholders and freeholders alike. While full implementation will take time, these changes mark the beginning of a long-overdue transformation in the housing sector.