Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, when he plans to commence secondary legislation for the Leasehold and Freehold Reform Act 2024.

The government has already made significant progress when it comes to commencing provisions in the Leasehold and Freehold Reform Act 2024:

• On 24 July 2024, we brought into force provisions relating to rentcharge arrears, building safety legal costs and the work of professional insolvency practitioners.
• On 31 October 2024, we brought into force further building safety measures.
• On 31 January 2025, we commenced provisions to remove the two-year qualifying rule in relation to enfranchisement and lease extensions.
• On 3 March 2025, the right to manage provisions (expanding access, reforming its costs, and voting rights) came into force.

The government recognises the considerable financial strain that rising service charges place on leaseholders and tenants. The level of service charge that leaseholders pay depends on many factors, including the terms of a lease and the age and condition of a building. By law, variable service charges must be reasonable. Overcharging through service charges is completely unacceptable. Should leaseholders wish to contest the reasonableness of their service charges they may make an application to the appropriate tribunal.

On 4 July 2025, the government published a consultation, jointly with the Welsh Government, on strengthening leaseholder protections over charges and services. The consultation included proposals to increase transparency over service charges and enhance access to redress through the relevant provisions in the Act. It also proposed new reforms the section 20 ‘major works’ procedure. The consultation can be found on gov.uk here. It closed on 26 September 2025, and we are analysing responses with a view to bringing the relevant measures into force as quickly as possible.

On 18 December 2025, the government launched a consultation on proposals to implement the Act’s new consumer protections for homeowners living on freehold estates. These include ensuring that homeowners who pay an estate management charge have better access to information they need to understand what they are paying for, the right to challenge the reasonableness at the First-tier Tribunal (in England), and to go to the tribunal to appoint a substitute manager. The consultation can be found on gov.uk here and will remain open for responses until 12 March 2026. We will look to bring these measures into force as quickly as possible thereafter.

The Act also sets the method for calculating the price of a statutory lease extension or freehold acquisition, known as the valuation process. It removes the requirement for marriage value to be paid, caps the treatment of ground rents in the valuation calculation at 0.1% of the freehold value, and allows government to prescribe the rates used to calculate the enfranchisement premium. Valuation rates used to calculate the enfranchisement premium will be set by the Secretary of State in secondary legislation. We will consult on valuation rates and commence the relevant provisions as soon as possible. As per my Written Ministerial Statement of 21 November 2024 (HCWS244), primary legislation will be required to rectify a small number of specific flaws in the 2024 Act before the Act’s enfranchisement provisions are commenced.