Future government plans for leasehold and commonhold reform

Leasehold commonhold update.jpeg.jpg

Matthew Pennycook, the Minister of State for Housing and Planning, recently issued a written ministerial statement setting out the government’s plans for leasehold and commonhold reform over the coming year.

Property law expert Eleanor Longworth, from WHN, outlines the key points from the statement. 

The plans include substantial changes for landlords, leaseholders and management companies. Mr Pennycook opens by stating that the government is determined to “do what is necessary to finally bring the feudal leasehold system to an end.” He acknowledges however, that it is complex and will take time.

The Leasehold and Freehold Reform Act 2024 (LFRA 2024), was enacted by the previous Conservative government, in the wash-up period prior to its dissolution. The key points are as follows:

  • LFRA 2024 only enacted a select number of the Law Commission recommendations relating to enfranchisement and right to manage.
  • The government intends to give leaseholders greater rights, powers and protections over their homes by implementing its provision however, it needs to be carefully considered because as drafted there are flaws.
  • An extensive programme of secondary legislation will be required to remedy the flaws and to implement LFRA 2024. 

Timetable and consultation

The following timetable is mentioned:

  • In January 2025, the government intends to remove the requirement for leaseholders to wait two years after purchasing their property before exercising rights to buy their freehold or extend their lease.
  • In Spring 2025, the right to manage provisions will be brought into force, meaning more leaseholders in mixed-use buildings can take over management from their freeholders, and leaseholders making claims will, in most cases, no longer have to pay their freeholder’s costs.

Consultations will be undertaken on:

  • service charges and legal costs, relating to service charge disputes;
  • valuation rates used to calculate enfranchisement premiums; and
  • greater protections for homeowners who pay estate management charges.

It will publish a White Paper on commonhold reforms early next year and a new Draft Leasehold and Commonhold Reform Bill can be expected in late 2025 focusing on commonhold reforms.

What is commonhold?

Commonhold is a form of freehold ownership and can be used in relation to flats, houses, mixed use and commercial developments. The owners of each unit on a commonhold development are collectively in control of management. Although launched in 2004, it has not been popular.

The government intends to consult on the best approach to banning new leasehold flats, and converting existing flats to commonhold, with a view to making commonhold the default tenure by the end of this parliament.

Other plans outlined in the ministerial statement

In the government’s view, LFRA 2024 does not go far enough, and it plans to address the Law Commission recommendations that were left untouched, such as unregulated and unaffordable ground rents; the poor quality of service provided by some managing agents; the threat of forfeiture as a means of ensuring compliance with a lease agreement; and the prevalence of ‘fleecehold’ private and mixed-tenure housing estates.

Further consultation and legislation can be expected.

The government appears committed to overhauling the current system of home ownership. We will keep you updated.

This post is an update to Eleanor’s previous article explaining the government’s intended objectives in the Leasehold and Freehold Reform Act 2024

Eleanor Longworth specialises in residential long leasehold dispute resolution matters, acting on behalf of landlords, management companies and leaseholders.

For further advice on acquiring a freehold, extending your lease or any other leasehold dispute resolution matter, call Eleanor Longworth on 0161 761 4611 or by email [email protected]

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin