The Leasehold and Freehold Reform Bill is a government bill. It was first introduced in the House of Commons and completed its stages in that House on 27 February 2024. It is scheduled to receive its second reading in the House of Lords on 27 March 2024.
The purpose of the bill is to “make long-term changes to homeownership for millions of leaseholders” in England and Wales. It is the second part of the government’s legislative package to reform English and Welsh property law. It follows on from the Leasehold Reform (Ground Rent) Act 2022, which put an end to ground rents for most new long residential leasehold properties in England and Wales. The latest bill would:
- ban new residential leasehold houses
- make it cheaper and easier for existing leaseholders in houses and flats to extend their lease or buy their freehold; and increase the standard lease extension term from 90 years to 990 years for houses and flats
- require greater transparency of service and administrative charges and replace buildings insurance commissions with transparent administration fees
- scrap the presumption for leaseholders to pay landlords’ legal costs
- grant freeholders on private and mixed tenure estates the same rights of redress as leaseholders
- require freeholders who manage their property to belong to a redress scheme
- amend the Building Safety Act 2022 to further protect leaseholders