London Property

The Leasehold and Freehold Reform Act has become law

Department for Levelling Up, Housing and Communities

 24 May 2024

Homeowners will now have more rights, power, and protections under the newly enacted Leasehold and Freehold Reform Act.
To connect with expert, email us at and we will put you in contact with the right person.

Key Points of the Act – Leasehold Reform 2024 law by Royal Assent:

  1. Easier and Cheaper Freehold Purchase:

    • Simplifies the process for leaseholders to buy their freehold.
  2. Extended Lease Terms:

    • Increases standard lease extension terms to 990 years for both houses and flats.
  3. Transparency in Service Charges:

    • Requires service charges to be issued in a standardized format for easier scrutiny and challenge.
  4. Challenge Unreasonable Charges:

    • Removes barriers for leaseholders to dispute unreasonable charges at Tribunal.
  5. Ban on New Leasehold Houses:

    • Prohibits the sale of new leasehold houses, except in exceptional circumstances.
  6. End Excessive Insurance Commissions:

    • Bans excessive buildings insurance commissions for freeholders and managing agents.
  7. Lease Extension and Freehold Purchase:

    • Abolishes the two-year ownership requirement before a leaseholder can extend their lease or buy the freehold.
  8. Rights for Freehold Homeowners:

    • Grants freehold homeowners the same rights of redress and transparency over estate charges as leaseholders.
  9. Management and Enfranchisement:

    • Increases the commercial space limit from 25% to 50% for buildings where leaseholders can take over management or buy the freehold.

Strengthened Consumer Rights:

  • Cheaper and Easier Lease Extensions and Freehold Purchases:

    • Reduces costs and increases security for leaseholders.
  • Standardized Service Charge Bills:

    • Enhances transparency and ease of challenge.
  • Empowerment in Management Choices:

    • Facilitates easier management takeover by leaseholders.
  • Legal Cost Reform:

    • Leaseholders will not have to pay freeholders’ costs when exercising enfranchisement rights.
  • Access to Redress Schemes:

    • Expands access to redress schemes for leaseholders to challenge poor practices.
  • Faster Property Transactions:

    • Sets maximum time and fees for buying and selling information.

Additional Benefits:

  • Legal Cost Relief:

    • Removes the presumption that leaseholders pay freeholders’ legal costs when challenging poor practices.
  • Transparent Insurance Fees:

    • Replaces opaque commissions with transparent and fair handling fees.
  • Freehold from the Outset:

    • Ensures new houses are freehold, except in exceptional circumstances.

The Act, now officially law with Royal Assent, marks a significant milestone in strengthening homeowner rights and consumer protections.



Subscribe to our newsletter

London Property is dedicated to assisting our community in preserving and enhancing property wealth. Through weekly news bulletins and expert conversations, we provide the latest insights from leading agents with our "Word from the Street" series. Follow us to stay ahead and make informed decisions on your terms. We specialize in finding creative solutions to property challenges.

Sign up to our newsletter to be kept informed as new content is released.


Ask us anything, we will have a solution.