Understanding the Leasehold & Freehold Reform Act 2024
- Jen Lemen
- Mar 25
- 3 min read
Updated: Apr 8
Building a Better You
Property Elite’s sole aim is to build better property professionals—supporting your career every step of the way. Whether you are an AssocRICS or RICS APC candidate or a MRICS or FRICS Chartered Surveyor, we offer engaging CPD.
We provide a wide array of training and support. Why not explore our website to learn how we can help you? We collaborate with candidates from various RICS APC and AssocRICS pathways, routes to assessment, and geographic regions.
Don’t forget to sign up online for your free 15-minute AssocRICS or RICS APC consultation. This includes a review of your referral report if you have been referred. You can also book your bespoke training or support services directly through our eShop.
Not sure yet? Check what our recent successful candidates say in our Testimonials.
What is this blog about?
In this week’s blog, we will explore a significant change introduced by the Leasehold & Freehold Reform Act 2024. This pertains to the ‘two year rule.’
This change is just one part of broader government reforms. We will look more comprehensively at these broader reforms in future blog articles.
The Bigger Picture
The Leasehold & Freehold Reform Act 2024 came into effect in May 2024. However, the key changes are scheduled to be implemented from January 2025 and then Spring 2025.
In this article, we will discuss the January 2025 amendment. The Spring 2025 changes involve the Right to Manage for mixed-use buildings, cost reforms, and amendments to voting rights.
Furthermore, the 2024 Act will precede the implementation of the draft Leasehold & Commonhold Bill later in 2025. This new bill will incorporate much wider changes and reforms than those in the 2024 Act alone.
What Did the Housing Minister, Matthew Pennycook, Say About the Reform?
“Millions of homeowners across the nation fondly remember the pride and satisfaction of purchasing their own home. However, for many leaseholders, the reality has fallen short of this dream. The government is committed to fulfilling the promises made in our manifesto. We intend to take steps to relieve those suffering from unfair practices. Our aim is to end the feudal leasehold system for good.”
Key Changes Coming in January 2025
The first major change effective from January 31, 2025, is the abolition of the ‘two year rule’.
This new regulation means that upon purchasing a leasehold property, you do not need to wait two years to extend the lease or purchase the freehold (enfranchisement).
Previously, leaseholders had to wait two years post-purchase before taking these actions.
Benefits for Leaseholders
This alteration benefits leaseholders significantly. It enhances their rights and security from the moment they acquire the leasehold property. Consequently, lease extensions or enfranchisement initiatives will not be overlooked during the two-year waiting period.
Why Is This Important?
Residential surveyors engaged in this practice area must be aware of the two-year rule's abolition and the associated reforms.
Offering prudent and timely advice to clients is critical to maintaining property values and ensuring ownership security.
Additionally, having a broad understanding of the market and key changes is essential for surveyors. It’s also relevant for those who own leasehold properties.
The Impact on Property Professionals
The changes brought about by the Leasehold & Freehold Reform Act 2024 signify a major shift in property law. As a property professional, staying informed about these reforms is vital. This knowledge allows you to better serve your clients.
By understanding these changes, you can provide more effective advice regarding leaseholds and enfranchisements.
Furthermore, clients significantly appreciate proactive engagement on potential changes affecting their property rights.
How Can We Help?
Don’t hesitate to book your submission feedback and review, APC question pack, e-mock interview, or 1-2-1 mentoring. We also offer revision quizzes, revision guides, and a CPD Webinar Package.
We provide both short- and long-term support packages in our eShop. These include our popular Monthly Mentoring and Kick Start packages.
Visit our blog archive for more free CPD resources and AssocRICS and RICS APC training support.
Access your free AssocRICS and RICS APC resources, including e-books and revision quizzes.
Discover our tailor-made AssocRICS and RICS APC training and support before booking your free 15-minute consultation.
Unsure about signing up? Read our recent successful candidates’ experiences in our Testimonials.
Stay tuned for our next blog post to help build a better you.
N.b. Nothing in this article constitutes legal, professional, or financial advice.
