The Leasehold and Freehold Reform Act 2024 (LAFRA) received royal assent at the end of May 2024. It was heralded as a key piece of legislation which aims to provide leasehold homeowners greater rights and protections over their homes. The Act follows on from the Leasehold Reform (Ground Rent) Act 2022, which put an end to ground rents for most new residential leasehold properties in England and Wales. Since 3 March 2025, changes to right to manage also came into force, which removed the requirement for leaseholders to cover their freeholder’s legal fees when making a right to manage claim.
However, despite promises that most of LAFRA’s key provisions would be in place by 2025 or 2026, the government has yet to fully implement the Act.
Why Was New Legislation Necessary?
The current leasehold system can have disadvantages for leaseholders, including:
- Lack of Independence Over Decision-Making – Leaseholders must seek approval from a freeholder on many issues affecting the property, such as whether they can have pets, are allowed to sublet the property or run a business from home. Leaseholders also need to request permission from a freeholder to change the property, which may be refused or have hefty fees associated with it.
- Excessive Charges – Many leaseholders must pay ground rent to the freeholder, which has increased in recent years as property has grown in appeal as an investment vehicle. Owners of leasehold properties must also usually pay service charges for the upkeep of communal areas, such as car parks or gardens. Leaseholders have been critical of the charges they must pay for services they believe are substandard, with appeals often thwarted by being expensive and difficult to bring.
- Difficult to Sell – The fewer years that are left on a lease, the more difficult it is to sell. Conveyancing fees are also typically higher for a leasehold property.
- Enfranchisement Process – Rules governing lease extensions have been criticised for being outdated, with leaseholders having to shoulder excessive costs.
What is Delaying LAFRA Implementation?
In November 2024, Matthew Pennycook, Minister of State for Housing and Planning, confirmed that the government had identified “a small number of specific but serious flaws” in LAFRA that require primary legislation to fix before full implementation, including a loophole affecting valuation reforms and an omission affecting shared ownership leaseholders.
Source: Parliament briefing – Leasehold Reform in England and Wales.
During a debate on leasehold reform, held in the House of Commons at the start of June 2025, Alex Norris, Parliamentary Under-Secretary of State at the Ministry of Housing, Communities and Local Government, further confirmed that the public consultation required to implement key parts of the Leasehold and Freehold Reform Act 2024 was still pending.
Furthermore, a legal challenge brought by a consortium of major freeholders over LAFRA further stalled the progression of the Act, when they won the right to a judicial review. The consortium argued that some unimplemented sections of LAFRA, including the abolition of marriage value, the capping of ground rent, and the liability of costs, infringed their human rights.
In October 2025, the High Court ruled in favour of the government, rejecting the challenges against LAFRA. However, it has now been confirmed that the freeholders have applied to appeal the High Court ruling. Should this appeal go ahead, it could significantly delay the full implementation of the Act, with some experts warning the move could delay the reforms by more than three years.
Source: Today’s Conveyancer – Freeholders Appeal High Court Decision on Leasehold Reform
What Has Already Been Implemented?
Various benefits of LAFRA are already in force, including:
- Abolition of the Two-Year Rule – The two-year ownership requirement (having owned the lease for two years before applying for extension or freehold) was abolished in January 2025. However, the changes to how lease extension premiums are calculated (e.g., valuation methodology, capping ground rents, removing marriage value) are not yet all in force.
- Right to Manage – Qualifying criteria for the Right to Manage have been changed to make it easier for leaseholders to take over management.
- Building Safety Act Amendments – Some changes to the Building Safety Act 2022 via LAFRA are already live.
What is Not Yet in Force?
Some key reforms are not yet fully active, including those around valuation and extended lease terms. While LAFRA provides the right to a 990-year lease on extension, this is not yet fully implemented in practice. LAFRA also intends to improve transparency around service charges and legal costs, standardise service charge demand forms, and ensure limitations on charging commissions for building insurance. However, the detailed regulations regarding service charges and legal costs are still under consultation and have not yet been implemented.
Future Reforms – Draft Bill
Looking ahead, the government committed in the King’s Speech 2024 to publish a draft Leasehold and Commonhold Reform Bill in the second half of 2025, which will:
- Enact remaining Law Commission recommendations.
- Reinvigorate commonhold tenure.
- Ban new leasehold flats (subject to consultation on exemptions).
What Does This Mean for You?
Leasehold properties bring with them various additional challenges. If you are considering buying a leasehold property, it’s essential to obtain proper legal advice from an experienced, regulated professional. Our leasehold property specialists can review the lease terms, check for any potential issues, and advise on all matters concerning leasehold property ownership and purchases.
If you are thinking of extending a lease now, be careful about when to act. Doing so now could mean you are negotiating under the “old” rules (shorter extension, possibly higher costs), but waiting carries the risk that reforms may be delayed or change.
It is also worth remembering that there may be mortgage or resale considerations, as some lenders or buyers may prefer a longer lease now, so delaying extending a lease may not be suitable if you need to sell your property now.
If you are a leaseholder and need some legal advice on the Leasehold and Freehold Reform Act 2024 or any other matter affecting you, get in touch with us today.
Leasehold and Enfranchisement Solicitors
We have extensive experience helping people in Kingston upon Thames, London, and across the South East of England with issues associated with leasehold properties, including lease extensions and enfranchisement, right to manage, and negotiations with freeholders. Our team also includes members of the Association of Leasehold Enfranchisement Practitioners (ALEP), ensuring you receive specialist expertise in this complex area of law.
Please get in touch with one of our specialist lease extension and freehold acquisition solicitors, to discuss the best way forward for you. We will provide you with further and specific advice tailored to your circumstances.
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