Following the rushed Royal Assent of the Leasehold and Freehold Reform Act 2024, further controversy has arisen. In the King’s Speech on 17 July, a new Leasehold and Commonhold Reform Bill was announced, but the full details of the Bill have yet to be released. We can expect more information on this in the near future. The current guidance highlights five key areas the Bill will address, which are explored below.

1. Enact remaining Law Commission recommendations to strengthen lease-holders’ rights to extend their lease, buy their freehold, and take over management of their building.

The 2024 Act addresses most of the Law Commission’s recommendations on lease extensions and freehold purchases. These include offering a 990-year lease instead of the current 90 years, removing the two-year ownership requirement for flat lease extensions, and extending the right to acquire freeholds in buildings where the commercial area makes up to 50%. Additionally, landlords will now be responsible for their own costs in these processes, except in limited circumstances. The Act also introduces prescribed rates for premiums and eliminates marriage value for leases under 80 years.

So, what remains for the new Bill to address? Could these provisions be revised? It’s important to note that none of the leasehold reform sections of the Act which gained Royal Assent in June are currently in force.