The Leasehold and Freehold Reform Act 2024 (LFRA) has officially landed. It received Royal Assent on 24 May 2024 after a swift push through Parliament in the pre-election wash-up period.
While many of its provisions aren’t yet in force, the Act signals a seismic shift in how leasehold property is handled across England and Wales – and its implications for homeowners, solicitors, and property professionals are significant.
The reforms are rooted in long-standing commitments made in the Conservative government’s 2017 housing white paper and shaped heavily by the Law Commission’s 2020 leasehold reform recommendations. The aim? To modernise the leasehold system, improve consumer fairness, and ultimately, dismantle what’s long been seen as an outdated and imbalanced form of ownership.
So, what’s actually changing?
The LFRA introduces wide-ranging reforms designed to strengthen leaseholder rights, reduce costs, and increase transparency. Some headline changes include:
Cheaper and longer lease extensions: Leaseholders will now be entitled to a 990-year lease extension with ground rent reduced to a peppercorn (zero monetary value). Importantly, the controversial marriage value element – which often inflated the cost of extending leases – has been scrapped.
Expanded rights to buy freeholds and manage buildings: The Act widens eligibility for leaseholders to extend their lease, buy their freehold, or collectively take over the management of their block. The Right to Manage process has also been simplified, with leaseholders no longer automatically liable for the freeholder’s legal costs.
Transparency overhaul: Landlords and managing agents must now provide clearer breakdowns of service charges, administration fees, and buildings insurance commissions. Leaseholders will also gain stronger rights to request and access property management information.
New leasehold houses banned: The sale of new leasehold houses is now prohibited, with limited exceptions.
Freehold homeowners protected too: The Act doesn’t forget about freeholders on private or mixed-tenure estates, who often face service charges with little recourse. Their rights to challenge charges and demand transparency have also been enhanced.
Where are we now?
Although the Act has passed, most of its provisions require secondary legislation before they can take effect. The Labour government has pledged to implement the reforms “as quickly as possible” but acknowledges the complexity involved. A few key elements are already in force:
No more two-year wait to extend leases or buy freeholds – effective from 31 January 2025.
Reformed Right to Manage rules – in force since 3 March 2025.
Consultations underway on service charge transparency, insurance fees, and leaseholder protections, due to close by September 2025.
Later this summer, the government will consult on how the new cost calculation system for lease extensions and freehold acquisitions should work – crucially, setting the rates that will replace marriage value. These will then be enacted via secondary legislation.
What’s on the horizon?
The Act is just one phase of a broader reform movement. In the King’s Speech 2024, the government committed to “take steps to bring the feudal leasehold system to an end.” To that end, a draft Leasehold and Commonhold Reform Bill is expected in late 2025.
That Bill is set to:
Enact the remaining Law Commission recommendations
Regulate ground rents for existing leases
Abolish forfeiture as a remedy
Revive and modernise commonhold as the future of flat ownership
Restrict the sale of new leasehold flats
What about Wales?
The LFRA applies to both England and Wales, but the Welsh Government will implement it via its own secondary legislation. Updates have already been provided to the Senedd, and the Welsh Government remains committed to delivering the Law Commission’s reform agenda.
Final thoughts
The LFRA 2024 marks a critical step toward modernising residential property ownership. While leaseholders won’t see all the benefits overnight, the direction of travel is clear: fairer, cheaper, more transparent homeownership.
The era of leasehold domination is on its way out – and for homeowners across England and Wales, that is very good news.
At Sweeney Miller Law, our expert commercial department is ready to guide you through every aspect of the reform. Whether you’re looking to extend your lease, buy your freehold, pursue a Right to Manage claim, or navigate leasehold enfranchisement – we have the legal insight and practical experience to get you results.
Get in touch today to discuss how these changes affect you and how we can help secure your property future.
Call 0345 900 5401, email enquiries@sweeneymiller.co.uk or visit www.sweeney