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Leasehold and Freehold Reform Act 2024

Answer

The Leasehold and Freehold Reform Act 2024 contains a small number of specific but serious flaws which would prevent certain provisions from operating as intended and that need to be rectified via primary legislation.

The Written Ministerial Statement made on 21 November 2024 (HCWS244) outlined two flaws regarding a loophole in the valuation scheme set out in the Act, and an omission on shared ownership lease extensions.

Primary legislation will also be needed to address the following flaws:

• Allow third parties to leases, such as resident-led management companies, to recover contributions toward their process costs in some instances. Without this change, these companies may be at risk of insolvency, which would be an unintended outcome of the reforms requiring landlords to pay their process costs;
• Correct an unintended constraint on landlords’ existing redevelopment break rights that applies in certain limited circumstances; and
• Correct technical cross references and make consequential amendments to ensure the smooth implementation of the Act.

The government will address these matters as soon as parliamentary time allows.

Secondary information

Type

Written question

Reference

25972

Session

2024-26

Related items

Leasehold and Commonhold Reform
Thursday, 21 November 2024
Written statements
House of Commons

Leasehold and Freehold Reform Act 2024
Friday, 21 November 2025
Written questions
House of Commons

Grouped for answer

Yes

Subjects

Commonhold Leasehold Freehold

Legislation

Leasehold and Freehold Reform Act 2024

Link

View this Written question on www.parliament.uk