Side-by-Side Comparison: 2022 Act vs 2024 Act
When buying, selling, or extending a leasehold property in England or Wales, conveyancing solicitors check both the Leasehold Reform (Ground Rent) Act 2022 and the Leasehold and Freehold Reform Act 2024. Here is how their legal scope and enforcement mechanisms differ:
| Feature | Leasehold Reform (Ground Rent) Act 2022 | Leasehold and Freehold Reform Act 2024 |
|---|---|---|
| Royal Assent & Core Effective Date | Royal Assent 8 Feb 2022; In force 30 June 2022 (1 April 2023 retirement) | Royal Assent 24 May 2024; Phased rollout (Oct 2024, Jan 2025, Mar 2025+) |
| Primary Target Group | Buyers of brand-new residential long leases (>21 years) | Existing leaseholders of flats/houses & freehold estate ('fleecehold') owners |
| Ground Rent Rules | Caps ground rent on all new regulated leases at 1 peppercorn (£0) | Caps ground rent at 0.1% of property value in extension valuation formulas |
| Lease Extension Reforms | Requires £0 ground rent on the extended portion of voluntary extensions | Abolishes 2-year wait (live Jan 2025), sets 990-year term & abolishes marriage value |
| Right to Manage (RTM) & Enfranchisement | Not covered | Doubles non-residential commercial threshold from 25% to 50% (live Mar 2025) |
| Service Charges & 'Fleecehold' Estates | Not covered | Bans insurance kickbacks, standardises accounts & lets freehold estate owners challenge charges at Tribunal |
Hidden Gem in the 2022 Act: Protection for Informal Lease Extensions (Section 6)
Most leaseholders assume the Leasehold Reform (Ground Rent) Act 2022 only helps people buying brand-new flats from a developer. In fact, Section 6 of the 2022 Act gives huge protection to existing pre-2022 leaseholders who agree a voluntary ('informal') lease extension with their landlord:
Because a lease extension legally operates as a 'deemed surrender and re-grant' of the lease, Section 6 dictates that on any voluntary extension granted on or after 30 June 2022: (a) the landlord cannot charge a higher ground rent than the level payable under the old lease for the remainder of the original term, and (b) once the original expiry date passes, the ground rent for the newly added extension years MUST drop to a peppercorn (£0).
Over the past 15 years, millions of buyers purchased 'freehold' new-build houses on private estates, only to discover they had to pay uncapped annual estate rentcharges for private roads and grass verges with zero statutory right to challenge them. Part 5 of the Leasehold and Freehold Reform Act 2024 gives freehold estate homeowners the same statutory rights as flat leaseholders to challenge the reasonableness of estate charges at the First-tier Tribunal and apply to replace an abusive estate management company.
Ban on New Leasehold Houses (Part 1 of the 2024 Act)
While the 2022 Act stopped ground rent on new leases, Part 1 of the Leasehold and Freehold Reform Act 2024 goes a step further for houses: it bans the grant or assignment of new long residential leases on houses in England and Wales (subject only to narrow exceptions such as shared ownership, community housing trusts, and retirement housing).
Any developer that attempts to sell a standard new-build house as leasehold in breach of Part 1 faces Trading Standards financial penalties and gives the buyer the statutory right to acquire the freehold at zero cost.
Conveyancing Due Diligence Checklist Across the 2022 & 2024 Acts
Use this 4-point checklist when reviewing any leasehold or new-build estate property: