This month, I want to share the latest updates on the evolving leasehold and freehold reform legislation. The Leasehold and Freehold Reform Act 2024, passed by the outgoing Conservative government earlier this year, was a landmark piece of legislation aimed at addressing leaseholders’ concerns. At the same time, Labour has promised an even more ambitious Leasehold and Commonhold Reform Bill. While these developments are promising on paper, the timelines for implementation remain frustratingly long.

Where are we now?
The government provided an update on leasehold reform in November 2024, clarifying that while progress is being made, the complexity of the changes means delays are inevitable. Housing and Planning Minister Matthew Pennycook issued a written statement outlining next steps, which include:
1. Consultation on valuation rates: This is scheduled for summer 2025 and will
set key figures such as the deferment rate and ground rent caps. These will be critical for calculating lease extensions and freehold purchases.

2. Timelines for implementation: While some provisions may take effect by 2026, the full reform package is unlikely to be in place until 2028 or later, as further primary legislation is required.

In addition, Labour announced plans to publish a white paper on commonhold reforms in early 2025, with the drafting of the Leasehold and Commonhold Reform Bill expected to begin in the latter half of the year.

While the aims are ambitious, the reality is that leaseholders will need to wait several more years for tangible change.