What the 2024 Leasehold Reform Act changed
Major reforms to English leasehold law passed in 2024. Here's a plain-English summary of what actually changed for leaseholders.
The Leasehold and Freehold Reform Act 2024 was the biggest change to leasehold law in decades. Not all of it is in force yet (some provisions commenced only in 2025/26), but here's where we are.
Ground rent banned on new leases. For all new residential leases granted after the commencement date, ground rent is capped at a peppercorn (nominal), effectively zero. This stops the "doubling ground rent" problem for new builds.
Extending your lease got cheaper. The "marriage value" premium that used to kick in for leases under 80 years has been abolished. Extending a 70-year lease is now substantially cheaper than it was. Leaseholders must have owned for at least two years to claim an extension (unchanged).
Buying your freehold (enfranchisement) is easier. The qualifying rules for collective enfranchisement have been relaxed, so more leaseholders in mixed-use buildings now qualify. The formulae for calculating the premium have been simplified.
Transparency on service charges. Landlords and managing agents must now publish annual service charge accounts in a standardised format, making it easier to compare and challenge.
What hasn't changed (yet). The expected ban on new leasehold houses didn't make it into the 2024 Act, but legislation has been promised. Commonhold reform (the alternative to leasehold for flats) is still on the consultation agenda.
Practical impact on current leaseholders. If you've been sitting on a lease extension, it may now be cheaper than you were quoted pre-2024. Get a fresh valuation.
Ready when you are
Get your fixed-fee quote in 3 minutes.
Fixed fees from day one. Referred only to SRA-regulated panel firms. Your case starts immediately.
Get your quote