--- title: "Leasehold and Freehold Reform Act 2024: What Has Changed—and What Has Not Yet Started" url: https://manage.management/blog/leasehold-and-freehold-reform-act-2024-what-has-changed-and-what-has-not-yet-started description: "A clear guide to the Leasehold and Freehold Reform Act 2024: live changes to RTM and leasehold claims & forthcoming valuation reforms." author: "Franklin Baeza" published: 2026-09-14T20:08:40.816Z updated: 2026-10-29T12:27:09Z categories: ["Leasehold Reform","UK Legislation"] publisher: Manage.Management language: en-GB --- # Leasehold and Freehold Reform Act 2024: What Has Changed—and What Has Not Yet Started A clear guide to the Leasehold and Freehold Reform Act 2024: live changes to RTM and leasehold claims & forthcoming valuation reforms. The Leasehold and Freehold Reform Act 2024 is a major step in the continuing reform of leasehold law. It is designed to make leasehold claims easier, improve transparency and reduce some costs that leaseholders can face. ## Key takeaways - The two-year ownership rule for lease extensions and freehold purchases was removed on 31 January 2025. - Right to Manage for buildings up to 50% non-residential, and new RTM cost rules, started on 3 March 2025. - 990-year extensions and the abolition of marriage value are law but not yet in force. - Check commencement dates before relying on any part of the Act. But the most important point is this: **the Act did not take effect all at once**. Some changes are already live, while others including the new lease-extension valuation framework still need further regulations before leaseholders can rely on them. If you own a flat, are a resident director, or are considering Right to Manage, it is important to distinguish between a legal right you can use today and a reform that is [still on its way](https://www.gov.uk/government/consultations/leasehold-enfranchisement-valuation-rates/plain-english-explainer-extending-your-lease-or-buying-your-freehold-its-getting-cheaper-and-easier). ## What the Act covers The Act received Royal Assent on 24 May 2024. It includes reforms to lease extensions, collective enfranchisement, Right to Manage, service-charge information and other areas of [leasehold law](https://www.legislation.gov.uk/ukpga/2024/22). It does **not** abolish leasehold ownership for existing flats. Wider plans to move new flats [towards commonhold](https://www.gov.uk/government/consultations/moving-to-commonhold-banning-leasehold-for-new-flats/moving-to-commonhold-banning-leasehold-for-new-flats) and to make conversion of existing buildings easier sit within the government’s broader reform programme and proposed legislation. For leaseholders, the practical question is not simply “what does the Act promise?” It is: **which provisions have commenced, and which still need implementing regulations?** ## Changes already in force Several changes have already taken effect and may matter now to leaseholders planning a statutory claim or considering [Right to Manage](https://rightto.manage.management). ## No more two-year wait [From 31 January 2025](https://www.legislation.gov.uk/uksi/2025/57/made), leaseholders no longer need to have owned their home for two years before starting a statutory lease-extension or enfranchisement claim. That can make a real difference when buying a flat with a short lease. A buyer may be able to begin a statutory claim after completion instead of waiting two years, subject to meeting the other legal eligibility requirements. This does not remove the need for proper valuation, formal notices or specialist legal advice. Lease extensions and freehold purchases remain technical statutory processes with strict deadlines. ## Right to Manage is easier in more mixed-use buildings Right to Manage, or RTM, allows qualifying leaseholders to take over management functions for their building without having to prove fault by the landlord. [From 3 March 2025](https://www.legislation.gov.uk/uksi/2025/131/made/data.xht?view=snippet&wrap=true), the permitted amount of non-residential floor space in a building increased from 25% to 50%. This means more mixed-use blocks such as those with shops, offices or commercial units on lower floors may now qualify for RTM. If your building was previously ruled out because too much of its floor space was non-residential, it is worth asking a specialist to reassess eligibility using the current rules. ## Better RTM cost protection The 2025 commencement package also [changed RTM cost rules](https://www.legislation.gov.uk/ukpga/2002/15/part/2). In most cases, the RTM company and its members are no longer liable for the landlord’s non-litigation costs arising from an RTM claim, except in circumstances set out in the legislation. The law also restricts recovery of relevant RTM claim costs through variable service charges. This can reduce a significant financial deterrent that historically discouraged some leaseholders from pursuing RTM.legislation. ## RTM still needs participation One point is often misunderstood: the 2024 Act [did](https://www.legislation.gov.uk/ukpga/2002/15/part/2) [**not**](https://www.legislation.gov.uk/ukpga/2002/15/part/2) [reduce the RTM participation threshold.](https://www.legislation.gov.uk/ukpga/2002/15/part/2) An RTM claim still requires the RTM company to have members representing at least half of the flats in the building at the relevant point in the process. Organising support from fellow leaseholders remains fundamental to a viable claim. For many blocks, the new mixed-use eligibility rule and improved cost protections are valuable but they do not remove the need to engage neighbours, gather information and follow the statutory procedure carefully. ## Lease extensions: major reforms are coming The Act contains ambitious changes to the lease-extension and enfranchisement system. However, the central valuation reforms are not yet generally available for new claims until the [government completes the necessary secondary legislation and commencement process.](https://www.gov.uk/government/consultations/leasehold-enfranchisement-valuation-rates/leasehold-enfranchisement-valuation-rates) ## A 990-year lease extension The [new framework](https://www.gov.uk/government/consultations/leasehold-enfranchisement-valuation-rates/plain-english-explainer-extending-your-lease-or-buying-your-freehold-its-getting-cheaper-and-easier) is intended to give flat leaseholders a 990-year lease extension at a peppercorn ground rent. This would replace the existing statutory 90-year extension for flats. For a qualifying leaseholder, that would provide much longer-term security and remove the prospect of repeated extensions in later life. But it should be presented as an **intended future right under the uncommenced framework**, not as a route currently available to every leaseholder. ## Marriage value is due to be removed Under the present valuation system, [marriage value](https://www.cityoflondon.gov.uk/services/housing-and-homelessness/housing-services/leasehold-and-freehold-reform-act-2024) can apply where a lease has 80 years or fewer remaining. It can materially increase the premium payable for a lease extension or collective freehold purchase. The Act’s new valuation framework is intended to remove marriage value. The government has also consulted on a cap on the ground-rent element used in valuation calculations, set at 0.1% of the freehold value where applicable. These measures could substantially affect the cost of some future claims. Until the new valuation rules are commenced, though, leaseholders should obtain current advice from a specialist enfranchisement surveyor and solicitor before deciding whether to proceed now or wait. ## Why timing matters There is no one-size-fits-all answer to whether you should start a claim immediately. A leaseholder with a short lease may have urgent mortgageability or resale concerns. Another may decide that waiting for the new valuation regime could be worthwhile. The right decision depends on lease length, ground rent, property value, lender requirements, sale plans and the likely timetable for implementation. The key is to make a decision based on current professional advice, not on an assumption that every announced reform is already law in practice. ## Service charges: more transparency is planned The Act provides for stronger and more standardised service-charge information. [Proposals include standardised service-charge demands, annual reports and more proactive information about buildings insurance arrangements.](https://www.gov.uk/government/consultations/strengthening-leaseholder-protections-over-charges-and-services-consultation/strengthening-leaseholder-protections-over-charges-and-services-consultation) These reforms are important because service charges are often difficult for leaseholders to understand, compare and challenge. Clearer information should make it easier to see what has been spent, what is planned and where questions need to be asked. However, the detailed requirements depend on regulations. Until those provisions are fully commenced, landlords and managing agents should continue to comply with existing statutory service-charge obligations, while leaseholders should continue to use their established rights to request information, inspect documents and challenge costs where appropriate. ## Insurance information The government’s consultation included proposals for landlords to provide specified insurance information proactively, including relevant information about the policy and related arrangements. Leaseholders already have established rights concerning insurance information, but the planned reforms aim to make disclosure more consistent and easier to understand. If insurance costs appear high or unclear, ask for the policy information, review the level of cover and consider whether the charges appear reasonable. ## Forfeiture has not yet been abolished Forfeiture is the legal remedy that can ultimately allow a landlord to bring a long residential lease to an end following breach of lease obligations, subject to significant statutory and procedural safeguards. The Leasehold and Freehold Reform Act 2024 did not abolish forfeiture for residential leaseholders. The government has proposed abolishing it and replacing it with a new, more proportionate lease-enforcement regime through the [draft Commonhold and Leasehold Reform Bill](https://assets.publishing.service.gov.uk/media/697865d0d345446f8ce71f82/Draft_Commonhold_and_Leasehold_Reform_Bill_-_Command_paper.pdf). That is an important distinction. Leaseholders should not assume forfeiture has disappeared, while landlords and managing agents should not assume that current enforcement practices will remain unchanged. ## What flat owners can do now You do not need to wait for every reform to take effect before improving your position. - **Check your lease length.** A lease approaching or below 80 years requires early attention because it can affect value, saleability, lending and the cost of a claim under the current valuation system. - **Review your ground rent.** Escalating or unusual ground-rent clauses can affect both value and mortgageability, and may be relevant to decisions about extending your lease. - **Keep service-charge records.** Save demands, budgets, accounts, invoices, Section 20 consultation documents, insurance information, meeting minutes and correspondence. - **Assess RTM eligibility again.** Buildings with up to 50% non-residential floor space may now qualify where they could not before. - **Build support early.** RTM and collective enfranchisement are collective projects. Start conversations with other leaseholders before you need signatures, contributions or formal decisions. - **Take professional advice before serving notices.** Statutory notices, counter-notices and deadlines can have major consequences. A specialist solicitor and valuer remain important for formal leasehold claims. ## Organising your building Better leaseholder rights are most effective when a building’s information is accessible, decisions are recorded and residents can communicate quickly. Manage.Management gives homeowners, resident directors and managing agents a shared place for service charges, repairs, documents, issues, decisions and building communications. That supports the practical habits that make leasehold rights easier to exercise: keeping an evidence trail, sharing documents and building resident engagement. Do not position software as legal advice or as a substitute for a solicitor, surveyor or managing agent. Its value is operational: helping people keep the right information in order and work from a shared record. ## Frequently asked questions ### Is the Leasehold and Freehold Reform Act 2024 fully in force? No. Some provisions are live, including removal of the two-year qualifying period for lease-extension and enfranchisement claims, plus parts of the RTM reform package. Many headline valuation and transparency changes still need secondary legislation or further commencement. ### Can I extend my lease by 990 years now? Not under the new framework yet. The Act provides for 990-year extensions, but the relevant valuation reforms and implementation steps are not yet generally in force. For a claim today, take advice on the current statutory process and valuation rules. ### Has marriage value already been removed? Not for ordinary current claims under the new regime. The Act is intended to remove marriage value, but implementation depends on the new valuation framework being brought into force. Until then, marriage value can remain relevant for leases at 80 years or fewer. ### Has RTM become easier? It can be easier for mixed-use buildings because the non-residential floor-space limit increased from 25% to 50% on 3 March 2025. RTM cost protections have also improved. However, the requirement for the RTM company to have membership representing at least half of the flats remains.legislation. ### Has forfeiture been abolished? No. Abolition of forfeiture is part of proposed future legislation, not a completed reform under the Leasehold and Freehold Reform Act 2024. ## Keep watching implementation The Act is best understood as an important legislative framework rather than a single switch that has already changed every leaseholder’s rights. Leaseholders who stay organised now will be better placed to use the reforms as they take effect: know your lease length, understand your building’s costs, keep records, build support among neighbours and get specialist advice before taking formal legal steps. Last reviewed: 29 October 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting. --- Source: [Leasehold and Freehold Reform Act 2024: What Has Changed—and What Has Not Yet Started](https://manage.management/blog/leasehold-and-freehold-reform-act-2024-what-has-changed-and-what-has-not-yet-started) on the Manage.Management blog.