{"id":4142,"date":"2026-06-08T02:25:50","date_gmt":"2026-06-08T02:25:50","guid":{"rendered":"https:\/\/www.yopa.co.uk\/homeowners-hub\/?p=4142"},"modified":"2026-06-08T14:21:25","modified_gmt":"2026-06-08T14:21:25","slug":"the-leasehold-and-freehold-reform-bill-and-what-it-will-mean-for-homeowners","status":"publish","type":"post","link":"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/the-leasehold-and-freehold-reform-bill-and-what-it-will-mean-for-homeowners\/","title":{"rendered":"The Leasehold and Freehold Reform Act 2024 and what it will mean for homeowners"},"content":{"rendered":"\n

On 7 November 2023, the government\u2019s Leasehold and Freehold Reform Bill was formally introduced by King Charles III in his first official King\u2019s Speech at the State Opening of Parliament, where the King sets out the programme of legislation intended for the upcoming parliamentary session.<\/p>\n\n\n\n

As one of 21 separate pieces of legislation mentioned in the King\u2019s Speech, the government planned to use the Bill to make it easier for leaseholders to purchase their freehold and tackle excessive service charges. <\/p>\n\n\n\n

In January 2023, Michael Gove, Secretary of State for Levelling Up, Housing and Communities, noted:<\/p>\n\n\n\n

\u201cWe hope, in the forthcoming King\u2019s Speech, to introduce legislation to fundamentally reform the system. Leaseholders, not just in this case but in so many other cases, are held to ransom by freeholders. We need to end this feudal form of tenure and ensure individuals have the right to enjoy their own property fully.\u201d<\/em><\/p>\n\n\n\n

On 24 May 2024, the Leasehold and Freehold Reform Act 2024<\/a> became law. We consider what it will mean for homeowners and what future reform could look like. <\/p>\n\n\n\n

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What is a leasehold property purchase?<\/strong><\/h3>\n\n\n\n

In contrast to a freehold<\/a> purchase, where you buy the property and the land it is built on outright, when a leasehold<\/a> property is purchased, ownership of the property is only bought for a set period of time. The \u2018lease\u2019 is the agreement that you have with the landlord or \u2018freeholder\u2019 which confirms how many years you will own the property before ownership returns to the landlord. <\/p>\n\n\n\n

The idea of a leasehold purchase has long been a contentious one in the UK housing market, with many owners of leasehold properties finding themselves subject to extra, unexpected costs via ground rent, lease extensions and service charges, even if they do not agree with the work that is being undertaken.<\/p>\n\n\n\n

What is the Leasehold and Freehold Reform Act and how did it come about? <\/h3>\n\n\n\n

Leasehold reform is not a new idea. In 2021<\/a>, in response to concerns raised by leasehold property owners, the then Secretary of State for Housing, Communities and Local Government, Robert Jenrick, announced that the government had planned legislation to allow leaseholders to extend their lease to a new standard of 990 years with zero ground rent. This resulted in the Leasehold Reform (Ground Rent) Act 2022<\/a>, which came into force for most new leases on 30 June 2022 and for new leases of retirement homes from 1 April 2023.<\/p>\n\n\n\n

However, it was agreed across the board that more needed to be done to reform the sector, particularly for existing leaseholders who were not accounted for in the Leasehold Reform (Ground Rent) Act 2022. <\/p>\n\n\n\n

With the introduction of the Leasehold and Freehold Reform Bill in November 2023, the Government proposed to:<\/p>\n\n\n\n