2025–2026 Leasehold & Commonhold Reform Implementation Timeline
Because UK leasehold reform spans both the already-enacted Leasehold and Freehold Reform Act 2024 (LAFRA 2024) and the second-stage draft Leasehold and Commonhold Reform Bill, flat buyers and leaseholders need to distinguish between provisions that are already legally in force today and those undergoing secondary consultation.
| Reform Measure | Statutory Instrument / Bill | Current Legal Status | Impact on Flat Buyers & Leaseholders |
|---|---|---|---|
| Ban on Ground Rent for New Leases | Leasehold Reform (Ground Rent) Act 2022 | IN FORCE (Since 30 June 2022) | All new residential leases must have a £0 peppercorn ground rent |
| Abolition of 2-Year Wait to Extend Lease | LAFRA 2024 s.27 (SI 2025/57) | IN FORCE (Since 31 January 2025) | New buyers can serve a statutory extension notice immediately after registration |
| Right to Manage (RTM) 50% Commercial Expansion & Cost Reform | LAFRA 2024 ss.49–64 (SI 2025/131) | IN FORCE (Since 3 March 2025) | Blocks with up to 50% ground-floor shops/offices can now claim RTM; freeholder RTM costs abolished |
| Building Safety Act Remediation & Insolvency Reforms | LAFRA 2024 Part 8 | IN FORCE (Since October 2024) | Stronger cladding remediation orders and developer cost recovery |
| 990-Year Extensions & Abolition of Marriage Value | LAFRA 2024 Part 2 & Schedule 4 | Enacted — Awaiting Valuation Rate SI | Slashes extension cost for <80-year leases once deferment/capitalisation rates are set |
| Commonhold as Default Tenure & Ban on New Leasehold Flats | Draft Leasehold & Commonhold Reform Bill | White Paper & Draft Bill Stage | New-build apartment blocks will be sold as freehold Commonhold units with no expiring lease |
Major Change Already Live: Right to Manage (RTM) Expanded on 3 March 2025
One of the most impactful changes already in legal force (via SI 2025/131 on 3 March 2025) is the overhaul of the Right to Manage (RTM) under the Commonhold and Leasehold Reform Act 2002:
• 50% Commercial Floorspace Threshold: Previously, if a residential apartment block had shops, restaurants, or offices on the ground floor that exceeded 25% of the building's total internal floor area, the flat owners were completely barred from claiming the Right to Manage. Since 3 March 2025, that threshold has doubled to 50%—unlocking RTM for thousands of urban mixed-use buildings.
• Freeholder RTM Costs Abolished: Previously, leaseholders exercising RTM had to pay all of the freeholder's legal costs, encouraging landlords to raise technical objections at leaseholders' expense. Under the March 2025 reform, each side pays their own RTM costs unless the leaseholders act unreasonably.
In a traditional 'Share of Freehold' building, you still own a diminishing lease on your individual flat alongside a share in a company that owns the building freehold. Under Commonhold (originally created by Part 1 of the Commonhold and Leasehold Reform Act 2002 and modernised by the 2026 Bill), leases disappear completely: you own the freehold of your individual flat forever with zero ground rent, and every unit owner is automatically a member of the Commonhold Association that manages the shared roof, hallways, and structure under a single democratic Commonhold Community Statement.
Service Charge Transparency & Regulation of Managing Agents
Alongside tenure reform, Part 4 of the Leasehold and Freehold Reform Act 2024 introduces strict consumer protections against opaque service charges and insurance kickbacks:
1. Ban on Opaque Buildings Insurance Commissions: Freeholders and managing agents are prohibited from charging hidden insurance broker kickbacks/commissions into leaseholders' service charge bills, restricting recovery strictly to a transparent 'permitted insurance fee'.
2. Standardised Service Charge Demands & Annual Reports: Landlords must issue service charge demands in a standardised accounting format, making it easy for flat owners to compare management fees across buildings.
3. Removal of Presumption That Leaseholders Pay Landlord Litigation Costs: Under Section 60, freeholders can no longer automatically recharge their legal tribunal costs back to leaseholders through the building's service charge pot unless the First-tier Tribunal explicitly orders it.
How Leaseholders Can Take Advantage of the Live Reforms Today
Take these four practical steps using the provisions already in force: