More details have emerged relating to the changes in the UK’s leasehold arrangements – one of the most far-reaching shake-ups of the rental property market in many years. Here Maunder Taylor, independent estate agents in Whetstone, look at the latest developments to leasehold reform which will affect landlords, investors and tenants.
In January 2025
Housing Minister Matthew Pennycook, pictured above, said in a Statement that that, in January next year, the Government would bring forward more Leasehold and Freehold Reform Act measures to give leaseholders more rights and security. This will see the removal of the so-called ‘two-year-rule’, so leaseholders no longer have to wait two years after the point of purchase before exercising their right to extend their lease or buy their freehold.
In Spring 2025
A package of measures will be introduced to expand access and reform the cost rules and voting rights where leaseholders claim the ‘Right to Manage’. This should make it easier for homeowners in mixed-use buildings to take over management responsibilities from their freeholders – and, in most cases, leaseholders making claims will no longer have to pay their freeholder’s costs.
During 2025
In the managing agents’ sector, Mr Pennycook said the Government was also looking to strengthen regulation to drive up the standard of service and ensure value for money. As a minimum, this will include a mandatory professional qualification and a new basic standard for managing agents, and this will go out to consultation next year.
More consultations will also take place next year on:
- ‘unreasonable’ service charges
- setting valuation rates used to calculate the cost of enfranchisement premiums
- and implementing new consumer protection provisions so those who pay freehold estate charges have more transparency of what they are paying for and the right to challenge at the First Tier Tribunal.
Before the Next Election
Mr Pennycook also announced that commonhold – where people own their homes without an expiring lease – would become the default tenure before the next election, which will be in 2029 if the Government serves a full-five-year term.
In 2025, there will be a further consultation on the best approach to banning new leasehold flats alongside a robust ban on leasehold houses. The conversion of existing flats to commonhold is also on the Government’s radar.
Not all the elements of the Leasehold and Freehold Reform Act will be implemented however, as ministers say they have identified flaws “which would prevent certain provisions from operating as intended and that need to be rectified”.
Maunder Taylor – Independent Estate Agents in Whetstone
Maunder Taylor offer a full range of estate agents’ and legal services across North London and Hertfordshire. So if you need business insurance in Potters Bar, are interested in commercial lets in Totteridge, or are considering residential property management in the Barnet area, you should come to us.
You can contact us by following this link and filling in the online form, or by calling 020 8446 0011 (our head office number in Whetstone) or
01707 665 666 (our Potters Bar number for residential management queries only).