The government has unveiled plans to strengthen protections for UK leaseholders, tackling hidden fees and boosting transparency in a move hailed as a significant step towards dismantling the traditional leasehold system. Leaseholders across the country will soon benefit from enhanced rights and clearer information on their building costs, allowing them to challenge unreasonable expenses and take control of their finances.
The reforms, part of the Leasehold and Freehold Reform Act 2024 (LFRA), have been shaped by extensive consultation with leaseholders, landlords, and industry bodies. From 2027, leaseholders can expect improved transparency around service charge costs, thanks to new measures that include an annual report from landlords detailing building conditions and plans for major works.
Key changes also include a new service charge demand form, which will clearly outline payments and their coverage, and rules shielding leaseholders from automatically being liable for their landlord’s legal bills in disputes. Landlords will be required to provide specific building information, including fire safety details and maintenance invoices, upon request, with clear timeframes for responses.
Housing Minister Matthew Pennycook has reassured existing leaseholders that they will not be overlooked as the government transitions towards a commonhold future. The minister stated that the government is acting to enable more leaseholders to take control of their buildings and convert to commonhold when deemed appropriate, while strengthening immediate protections by enhancing service charge transparency and rebalancing legal costs.
Two new public consultations have commenced, focusing on accelerating enfranchisement reforms. These proposals aim to set specific valuation rates in regulations, reducing disputes over costs and providing leaseholders with greater certainty when extending their lease or purchasing their freehold. The consultations will also address protecting leaseholders from covering their landlord’s solicitor, valuer, or administrative fees during this process.