On 21 November 2024, Matthew Pennycook, Minister for Housing and Planning, provided an update on the next steps to reforming the leasehold market. This marks the first detailed announcement on leasehold reforms under the new government.

The key announcements include:
• Removal of the ‘2-Year Rule’ (January 2025): The government intends to implement the Leasehold and Freehold Reform (2024) Act’s provision to abolish the ‘2-year rule.’ This change will allow leaseholders to extend their lease or purchase their freehold immediately after acquiring their property.
• Right-to-Manage Provisions (Spring 2025): These provisions will make it easier for leaseholders in mixed-use buildings to assume management responsibilities from freeholders. In most cases, leaseholders making claims will no longer have to cover the freeholder’s costs. However, secondary legislation is required to clarify voting rights and other procedural aspects.
• Introduction of the Leasehold and Commonhold Reform Bill (Second Half of 2025): This bill aims to establish commonhold as the default tenure type by the end of the current parliament, representing a significant shift in property ownership models.

The government has also committed to launching consultations on several key issues to support the reforms:
• Building Insurance Commissions: Proposals to ban commissions for landlords, property managers, and freeholders, replacing them with fees.
• Service Charges and Legal Costs: Initiatives to improve transparency and strengthen leaseholders’ ability to challenge unreasonable charges.
• Enfranchisement Premium Valuation Rates: Reviewing the methodology for calculating enfranchisement premiums.
• Consumer Protection: New protections for up to 1.75m homes subject to charges.

Additionally, the government plans to introduce mandatory professional qualifications for managing agents to enhance service quality and boost leaseholder satisfaction, with consultations set to launch in 2025.