Leasehold and Freehold Reform Act 2024

What it does

The Act received Royal Assent on 24 May 2024. Most of it only takes effect when the government makes commencement regulations, so always check the status of the part you are relying on.

In force

• No two-year ownership rule before a lease extension or freehold purchase (from 31 January 2025).
• Right to manage and collective enfranchisement for buildings with up to 50% non-residential floor area (from 3 March 2025).
• RTM costs: leaseholders generally no longer pay the landlord’s costs of an RTM claim (from 3 March 2025).
• Parts of the building safety remediation changes.

Enacted, not commenced

• Service charge transparency: a standard demand form, notice of future demands, a prescribed annual report, standardised accounts, a right to request information, a published schedule of administration charges and buildings insurance transparency. The government’s July 2026 response planned five sets of regulations by the end of 2026, with the first measures expected in 2027.
• Litigation costs: landlords will need a tribunal or court order to recover their legal costs from leaseholders.
• Valuation changes: 990-year lease extensions at a peppercorn, no marriage value, prescribed rates.
• Estate management protections and the ban on new leasehold houses.

What it means for a self-managed block

Setting up your demands, accounts and annual report in the expected formats now saves work later. Freeholdpilot tracks each commencement date and will switch the new formats on when they apply.