On 21st November 2024, Housing Minister Matthew Pennycook gave an update to Parliament on this area of law pledging to bring leasehold to an end and to implement the changes enacted by the Leasehold and Freehold Reform Act 2024 (the Act).
This marks one of the most significant steps towards reforming property ownership in England and Wales.
What has already changed?
An end to the 2 year wait to extend flat or house leases:
This change has been brought in. Leaseholders can now apply to extend their leases as soon as the transfer of the lease has been registered at the Land Registry.
RTM changes
Increase access to the Right to Manage: Buildings with up to 50% non-residential floor space can now qualify for a RTM claim, a significant increase from the previous 25% limit.
Reduced financial burden on leaseholders: Leaseholders making a RTM claim will no longer be required to cover the freeholder’s legal costs, unless the claim is withdrawn or deemed invalid. This removes a significant financial barrier to exercising the RTM.
Freeholders are also prohibited from including non-litigation costs related to the RTM claim in service charges, further protecting leaseholders from punitive costs.
Amendments to RTM company model articles: The RTM Companies (Model Articles) (England) (Amendment) Regulations 2025 have been introduced, limiting the voting power of landlords in RTM companies.
There have also been some changes to the law on rentcharges and to certain sections of the Building Safety Act 2022.
What has not yet changed but is still on the agenda?
Commonhold
In March 2025 the government published its proposed reforms to commonhold and its proposals to deal with the conversion of existing leasehold blocks.
Whilst there is an extensive set of proposals for new commonhold developments, the government is still working on the proposals for the conversion of existing flat blocks.
Service Charges
In July 2025 the government published its consultation on reform of service charge legislation and bringing into effect some of the provisions of the Act.
What else is proposed?
- In the later part of this year the government intends to publish the draft Leasehold and Commonhold Reform Bill.
- Before the end of 2025 the government intends to engage with stakeholders and delivery partners in consultations on how some of the remaining provisions of the Act will operate, including:
- a ban on buildings insurance remuneration; and
- valuation rates used to calculate the cost of enfranchisement premiums.
- The Law Commission has announced that one of its projects will be to consider the creation of a new right for freeholders (house owners) on housing estates to take over the management of their estates.
- The government also intends to bring forward proposals to ban the sale of new leasehold flats.