Leasehold Reform in England: What the Leasehold and Freehold Reform Act 2024 Changes for Blocks

The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024. It is a wide-ranging Act, and most of it comes into force in stages through regulations made by the government. This guide explains what the Act provides for, which parts are in force as of October 2026, and what directors and leaseholders of blocks of flats can do to prepare. Because commencement is ongoing, always check the current position before relying on a particular provision.

What is already in force

As of October 2026, the following provisions have been brought into force:

• 24 July 2024 (two months after Royal Assent): provisions on remedies for rentcharge arrears, restrictions on recovering certain building safety legal costs through the service charge, the repeal of section 125 of the Building Safety Act 2022, and insolvency notifications for higher-risk and relevant buildings.
• 31 October 2024: amendments to the Building Safety Act 2022 on steps relating to the remediation of defects, remediation orders and remediation contribution orders.
• 31 January 2025: removal of the two-year ownership requirement before a leaseholder can claim a lease extension or buy the freehold, in England and Wales.
• 3 March 2025: Right to Manage changes, including raising the non-residential limit for Right to Manage claims from 25% to 50% of the internal floor area, changes to the costs of Right to Manage claims, and related procedural changes.

What the Act provides for, subject to commencement

Service charge transparency

The Act provides for standard-form service charge demands, notice of future service charge demands, annual reports and accounts, and a stronger right for leaseholders to obtain information on request. The government's leasehold toolkit (May 2026) says it will bring these transparency measures into force as quickly as possible. A well-run building will already be close to these standards, with clear budgets, timely accounts and open access to invoices.

Buildings insurance

The Act provides for limits on the insurance costs landlords can pass on to leaseholders and a duty to give leaseholders information about the insurance. The government has said it will commence new rules to stop leaseholders being charged unfair or hidden commissions. See our guide to building insurance for blocks of flats.

Litigation and administration costs

The Act provides for limits on landlords' rights to recover litigation costs from leaseholders, a right for leaseholders to claim costs in some circumstances, and a duty on landlords to publish schedules of administration charges.

Lease extensions and buying the freehold

The Act provides for a standard lease extension term of 990 years for flats at a peppercorn ground rent, changes to how the price is calculated (including removal of marriage value), and wider rights for leaseholders to buy the freehold collectively. These valuation changes are subject to commencement, so leaseholders considering a claim should check the current position and take specialist advice on timing.

Redress and estate management

The Act provides for landlords to belong to a redress scheme, and for new rights for homeowners on private estates who pay estate management charges.

Leasehold houses

The Act provides for restrictions on granting or selling new houses on long leases, subject to exceptions and commencement.

Wales

Some provisions of the Act apply in England and Wales, and some in England only. The Welsh Government publishes its own updates on leasehold reform in Wales, so Welsh blocks should check the position there.

Further reform in the pipeline

Separately, in January 2026 the government published a draft Commonhold and Leasehold Reform Bill. It proposes making commonhold easier to adopt, ending the use of leasehold for most new flats, capping ground rents on existing leases at £250 a year (moving to a peppercorn after 40 years) and replacing forfeiture with a new lease enforcement scheme. These remain proposals until the Bill is passed and brought into force. See our guide to ground rent and leaseholders.

What it means for directors, leaseholders and freeholders

RMC and RTM directors

As landlord or manager, the company will be responsible for the new transparency duties once they commence. Directors can prepare now by making sure the managing agent's reporting, accounts and record-keeping are already of a high standard.

Leaseholders

The changes already in force make it easier to start a lease extension or freehold claim and to qualify for Right to Manage in mixed-use buildings. The wider changes, once commenced, will give leaseholders more information about their service charges and insurance.

Freeholders and managing agents

Freeholders who manage through an agent should review insurance arrangements, administration charges and service charge reporting against what the Act provides for, so that the transition is smooth when each provision comes into force.

Keeping up to date

New commencement regulations are published on legislation.gov.uk, and the government's leasehold pages on GOV.UK summarise what has changed. The Leasehold Advisory Service (LEASE) also publishes free guidance for leaseholders in England. Because different provisions start on different dates, it is worth checking the position each time a decision depends on a particular part of the Act, such as the timing of a lease extension claim or the form of a service charge demand.

How blocks can prepare

• Make sure budgets explain every line, and year-end accounts are issued promptly
• Keep invoices and supporting documents organised and ready to share
• Review insurance arrangements and ask for full disclosure of commissions and remuneration
• Review the schedule of administration charges for clarity and fairness
• Keep a planned maintenance programme and a reserve fund linked to it
• For RTM-eligible buildings with commercial space, check whether the new 50% limit now makes a claim possible

At Westbridge we track leasehold reform closely and update our processes as each provision comes into force, so directors and leaseholders can concentrate on their building. See our Right to Manage guide or get in touch to talk about your building.