Leaseholders are increasingly opting for the Right to Manage (RTM) their properties, a trend observed over the past year. This movement is attributed to the ongoing uncertainty surrounding leasehold reform, particularly in response to the draft Commonhold and Leasehold Reform Bill and the enactment of the Leasehold and Freehold Reform Act (LAFRA).
LAFRA, which came into effect on 3 March 2025, has simplified the RTM process. It raised the non-residential limit for qualifying buildings from 25% to 50%, allowing more mixed-use properties to be eligible. Additionally, leaseholders are generally no longer required to cover the freeholder’s legal costs in an RTM claim.
The draft Commonhold and Leasehold Reform Bill was published on 27 January, but questions persist regarding its scrutiny, parliamentary journey, and the likelihood of it becoming law before the next general election. This continued uncertainty is seen as a catalyst for leaseholders seeking immediate control through RTM.
While RTM offers leaseholders more control without requiring them to purchase the freehold, it also brings responsibilities such as appointing contractors, collecting service charges, and managing accounts. Experts caution that professional management often remains essential, and RTM should be viewed as a long-term management decision supported by financial discipline.