Leasehold Reform moves a step closer as government makes major announcement

The government has announced that it will switch on a key part of the Leasehold and Freehold Reform Act next week.

Housing minister Matthew Pennycook yesterday signed regulations to remove the two-year ownership rule for leaseholders of flats and houses to extend their lease or buy their freehold.

The change will offer leaseholders the flexibility to make a claim immediately upon buying a leasehold property and reduce their costs as a result.

Reflecting on the development, the National Leasehold Campaign (NLC), said: “Whilst we welcome the action there is still a long way to go to deliver the promises Leaseholders desperately need and deserve. Without the valuation section of the Leasehold and Freehold Reform Act (LAFRA) 2024 being switched on, many leaseholders remain in a state of ‘Leasehold limbo’. They still won’t be able to afford the overinflated premiums and legal fees to buy their freehold or extend their lease.

“We urge the government to expedite the valuation part of the Act so that leaseholders can enfranchise or extend their lease quicker, easier and cheaper. This is what millions of leaseholders and the 30,000 members in the NLC are waiting for.

“Time is running out as in the meantime Leaseholders remain at the mercy of freeholder investors who continue to fleece tenants through extortionate charges trapping them in a system they cannot afford to get out of.”