The Leasehold and Freehold Reform Act received royal assent more than a year ago, with the new legislation passing into law at the end of May 2024.
However, despite promising to overhaul the “feudal” leasehold system of property ownership, progress has been slow, with many of the reforms not yet in force.
In this blog, our experienced Residential Property and Enfranchisement Lawyers in Marylebone summarise the latest developments on leasehold reform.
What is the Leasehold and Freehold Reform Act?
The Leasehold and Freehold Reform Act was introduced as part of a legislative package to reform leasehold law in England and Wales.
It aims to create a fairer and more secure system of home ownership by strengthening consumers’ rights and making it easier and cheaper for leaseholders to buy their homes.
The Leasehold Reform Act will:
- Increase a standard lease extension to 990 years.
- Give more rights to leaseholders looking to buy their freehold.
- Remove the requirement for leaseholders to pay marriage value.
- Make it easier for leaseholders to take over the management of their building.
- Remove the two-year qualifying period for leaseholders wishing to extend their lease.
- Extend access to redress schemes for leaseholders looking to challenge poor practice.
- Increase transparency over service charges.
- Ban the sale of new leasehold houses.
- Increase the proportion of commercial space allowed in mixed-use buildings from 25% to 50%, enabling more homeowners to enfranchise or take over the management of their building.
Is the Leasehold Reform Act in force?
As of August 2025, most of the provisions of the Leasehold Reform Act are not yet in force. To date, the government has:
- Laid regulations to permit leaseholders to extend their lease or buy their freehold without having to wait for two years after purchasing their property. This came into force on 31 January 2025.
- Laid regulations to implement the act’s Right to Manage (RTM) provisions. This includes changing the qualifying criteria to give more leaseholders the RTM and removing the requirement for leaseholders to cover the freeholder’s legal fees when making an RTM claim. These regulations came into force on 3 March 2025.
- Consulted on proposals to increase the transparency of buildings insurance fees charged to leaseholders. The consultation closed on 24 February 2025 and the government is analysing the feedback.
- Launched a consultation on measures to strengthen leaseholder protections over charges and services. This consultation closes on 26 September 2025.
Why has leasehold reform been so slow?
Several obstacles stand in the way of further leasehold reform. These include:
- Secondary legislation. Implementation of the Act requires substantive secondary legislation which needs to be drafted.
- Judicial review. In January 2025, a group of freeholders were granted permission for a judicial review of the Leasehold and Freehold Reform Act 2024 to challenge certain parts of the Act, including those relating to enfranchisement, lease extensions and the cap on ground rents. This concluded in July 2025 and the court has yet to deliver a judgment.
- Consultation. The government needs to publicly consult on various key parts of the Act, which is still pending.
The government has committed to implementing the Act “as quickly as possible”. However, full rollout is likely to take years not months.
Until more provisions of the Leasehold and Freehold Reform Act come into force, the practical impact on leaseholders is minimal, and existing law and procedures still apply.
Should I wait to extend my lease or do it now?
If you are a leaseholder considering extending your lease or purchasing your freehold, specialist legal advice on lease extensions is vital.
What you might choose to do will depend on factors like your lease length and your circumstances.
Lease Extension Solicitors Marylebone
For advice and assistance relating to lease extensions, right to manage and enfranchisement matters, please contact Alex Finney.
Telephone 0207 586 1141 or email contact@muscattblackgraf.com.
This blog was prepared on 12 August 2025. It is not intended to be advice and should not be relied upon as such.