Leasehold and Freehold Reform Act 2024

  1. Introductory Text

  2. Part 1 Leasehold houses

    1. Ban on grant or assignment of certain long residential leases of houses

      1. 1.Ban on grant or assignment of certain long residential leases of houses

    2. Key definitions

      1. 2.Long residential leases of houses

      2. 3.Leases which have a long term

      3. 4.Series of leases whose term would extend beyond 21 years

      4. 5.Houses

      5. 6.Residential leases

      6. 7.Permitted leases

    3. Regulation of permitted leases

      1. 8.Permitted leases: certification by the appropriate tribunal

      2. 9.Permitted leases: marketing restrictions

      3. 10.Permitted leases: transaction warning conditions

    4. Land registration

      1. 11.Prescribed statements in new long leases

      2. 12.Restriction on title

    5. Redress

      1. 13.Redress: right to acquire a freehold or superior leasehold estate

      2. 14.Redress: application of the right to acquire

      3. 15.Redress: general provision

      4. 16.Redress regulations: exercising and giving effect to the right to acquire

    6. Enforcement

      1. 17.Enforcement by trading standards authorities

      2. 18.Financial penalties

      3. 19.Financial penalties: cross-border enforcement

      4. 20.Lead enforcement authority

      5. 21.General duties of lead enforcement authority

      6. 22.Enforcement by lead enforcement authority

      7. 23.Further powers and duties of enforcement authorities

    7. General

      1. 24.Part 1: Crown application

      2. 25.Power to amend: permitted leases and definitions

      3. 26.Interpretation of Part 1

  3. Part 2 Leasehold enfranchisement and extension

    1. Eligibility for enfranchisement and extension

      1. 27.Removal of qualifying period before enfranchisement and extension claims

      2. 28.Removal of restrictions on repeated enfranchisement and extension claims

      3. 29.Change of non-residential limit on collective enfranchisement claims

      4. 30.Eligibility for enfranchisement and extension: specific cases

    2. Effects of enfranchisement

      1. 31.Acquisition of intermediate interests in collective enfranchisement

      2. 32.Right to require leaseback by freeholder after collective enfranchisement

    3. Effects of extension

      1. 33.Longer lease extensions

      2. 34.Lease extensions under the LRA 1967 on payment of premium at peppercorn rent

    4. Price payable on enfranchisement or extension

      1. 35.LRA 1967: determining price payable for freehold or lease extension

      2. 36.LRHUDA 1993: determining price payable for collective enfranchisement or new lease

      3. 37.Enfranchisement or extension: new method for calculating price payable

    5. Costs of enfranchisement or extension

      1. 38.Costs of enfranchisement and extension under the LRA 1967

      2. 39.Costs of enfranchisement and extension under the LRHUDA 1993

    6. Jurisdiction of the county court and tribunals

      1. 40.Replacement of sections 20 and 21 of the LRA 1967

      2. 41.References to “the court” in Part 1 of the LRA 1967

      3. 42.Amendment of Part 1 of the LRHUDA 1993

      4. 43.References to “the court” in Part 1 of the LRHUDA 1993

    7. Jurisdiction of the High Court

      1. 44.No first-instance applications to the High Court in tribunal matters

    8. Enfranchisement and extension: miscellaneous amendments

      1. 45.Miscellaneous amendments

    9. Preservation of existing law for certain purposes

      1. 46.LRA 1967: preservation of existing law for certain enfranchisements

    10. Consequential amendments to other legislation

      1. 47.Part 2: consequential amendments to other legislation

  4. Part 3 Other rights of long leaseholders

    1. New right to replace rent with peppercorn rent

      1. 48.Right to vary long lease to replace rent with peppercorn rent

    2. The right to manage

      1. 49.Change of non-residential limit on right to manage claims

      2. 50.Costs of right to manage claims

      3. 51.Compliance with obligations arising under Chapter 1 of Part 2 of the CLRA 2002

      4. 52.No first-instance applications to the High Court in tribunal matters

  5. Part 4 Regulation of leasehold

    1. Service charges

      1. 53.Extension of regulation to fixed service charges

      2. 54.Notice of future service charge demands

      3. 55.Service charge demands

      4. 56.Accounts and annual reports

      5. 57.Right to obtain information on request

      6. 58.Enforcement of duties relating to service charges

    2. Insurance

      1. 59.Limitation on ability of landlord to charge insurance costs

      2. 60.Duty to provide information about insurance to tenants

    3. Administration charges

      1. 61.Duty of landlords to publish administration charge schedules

    4. Litigation costs

      1. 62.Limits on rights of landlords to claim litigation costs from tenants

      2. 63.Right of tenants to claim litigation costs from landlords

    5. Non-litigation costs: enfranchisement, extension and right to manage

      1. 64.Restriction on recovery of non-litigation costs of enfranchisement, extension and right to manage

    6. Appointment of manager by Tribunal

      1. 65.Appointment of manager: power to vary or discharge orders

      2. 66.Appointment of manager: breach of redress scheme requirements

    7. Sales information requests

      1. 67.Leasehold sales information requests

    8. General

      1. 68.Regulations under the LTA 1985: procedure and appropriate authority

      2. 69.LTA 1985: Crown application

      3. 70.Part 4: consequential amendments

      4. 71.Application of Part 4 to existing leases

  6. Part 5 Regulation of estate management

    1. Key definitions

      1. 72.Meaning of “estate management” etc

    2. Limitation of estate management charges

      1. 73.Estate management charges: general limitations

      2. 74.Limitation of estate management charges: reasonableness

      3. 75.Limitation of estate management charges: consultation requirements

      4. 76.Limitation of estate management charges: time limits

      5. 77.Determination of tribunal as to estate management charges

    3. Rights relating to estate management charges

      1. 78.Demands for payment

      2. 79.Annual reports

      3. 80.Right to request information

      4. 81.Requests under section 80: further provision

      5. 82.Enforcement of sections 78 to 81

    4. Administration charges

      1. 83.Meaning of “administration charge”

      2. 84.Duty of estate managers to publish administration charge schedules

      3. 85.Enforcement of section 84

      4. 86.Limitation of administration charges

      5. 87.Determination of tribunal as to administration charges

    5. Codes of management practice

      1. 88.Codes of management practice: extension to estate managers

    6. Appointment of substitute manager by Tribunal

      1. 89.Notices of complaint

      2. 90.Appointment of substitute manager

      3. 91.Conditions for applying for appointment order

      4. 92.Criteria for determining whether to make appointment order

      5. 93.Appointment orders: further provision

    7. Sales information requests

      1. 94.Estate management: sales information requests

      2. 95.Effect of sales information request

      3. 96.Charges for provision of information

      4. 97.Enforcement of sections 95 and 96

    8. General

      1. 98.Part 5: Crown application

      2. 99.Interpretation of Part 5

  7. Part 6 Leasehold and estate management: redress schemes

    1. Redress schemes: general

      1. 100.Leasehold and estate management: redress schemes

      2. 101.Redress schemes: voluntary jurisdiction

      3. 102.Financial assistance for establishment or maintenance of redress schemes

      4. 103.Approval and designation of redress schemes

      5. 104.Redress schemes: no Crown status

    2. Enforcement

      1. 105.Financial penalties

      2. 106.Financial penalties: maximum amounts

      3. 107.Decision under a redress scheme may be made enforceable as if it were a court order

      4. 108.Lead enforcement authority: further provision

    3. Guidance

      1. 109.Guidance for enforcement authorities and scheme administrators

    4. Amendments to other Acts

      1. 110.Part 6: amendments to other Acts

    5. Interpretation

      1. 111.Interpretation of Part 6

  8. Part 7 Rentcharges

    1. 112.Meaning of “estate rentcharge”

    2. 113.Regulation of remedies for arrears of rentcharges

  9. Part 8 Amendments of Part 5 of the Building Safety Act 2022

    1. Remediation of building defects

      1. 114.Steps relating to remediation of defects

      2. 115.Remediation orders

      3. 116.Remediation contribution orders

      4. 117.Recovery of legal costs etc through service charge

      5. 118.Repeal of section 125 of the BSA 2022

    2. Insolvency of responsible persons

      1. 119.Higher-risk and relevant buildings: notifications in connection with insolvency

  10. Part 9 General

    1. 120.Interpretation of references to other Acts

    2. 121.Power to make consequential provision

    3. 122.Regulations

    4. 123.Extent

    5. 124.Commencement

    6. 125.Short title

  11. Schedules

    1. Schedule 1

      Categories of permitted lease

      1. Part 1 Categories of permitted lease for Tribunal certification

        1. 1.Leases granted out of historic leasehold estates

        2. 2.Community housing leases

        3. 3.Retirement housing leases

        4. 4.Leases of certain National Trust property

        5. 5.Leases granted by the Crown

      2. Part 2 Categories of permitted lease for self-certification

        1. 6.Leases agreed before commencement

        2. 7.Shared ownership leases

        3. 8.Home finance plan leases

        4. 9.Extended leases

        5. 10.Agricultural leases

    2. Schedule 2

      Leasehold houses: financial penalties

      1. 1.Notice of intent

      2. 2.Time limits for notice of intent

      3. 3.Right to make written representations

      4. 4.Final notice

      5. 5.Withdrawal or amendment of notice

      6. 6.Appeals

      7. 7.Recovery of penalty

      8. 8.Proceeds of penalties

      9. 9.Any proceeds of a penalty which are not applied in...

      10. 10.Manner of giving notices

      11. 11.Interpretation

    3. Schedule 3

      Eligibility for enfranchisement and extension: specific cases

      1. 1.Removal of redevelopment restrictions on enfranchisement and extension

      2. 2.Removal of residential restriction on enfranchisement and extension under the LRA 1967

      3. 3.Removal of public purposes restriction on enfranchisement and extension under the LRA 1967

      4. 4.Exception to enfranchisement for certified community housing providers

      5. 5.(1) The LRHUDA 1993 is amended as follows.

      6. 6.Removal of restriction on extension claims by sub-lessees

      7. 7.Eligibility of leases of National Trust property for extension

      8. 8.For section 95 of the LRHUDA 1993 (saving for National...

      9. 9.Consequential amendments to the LRA 1967

      10. 10.In section 20(2)(d) (jurisdiction and special powers of county court),...

      11. 11.In section 21(1)(c) (jurisdiction of tribunals), omit “or 18”.

      12. 12.In section 25(5)(a) (mortgagee in possession of landlord’s interest), omit...

      13. 13.In section 29 (reservation of future right to develop)—

      14. 14.In section 38 (modification of right to possession under Landlord...

      15. 15.In Schedule 1 (enfranchisement and extension by sub-tenants), omit paragraph...

      16. 16.In Schedule 2 (provisions supplementary to sections 17 and 18)—...

      17. 17.In Schedule 3 (procedure)— (a) omit paragraph 7(3);

      18. 18.In Schedule 4 (covenants with local authorities etc), in paragraph...

      19. 19.Consequential amendments to the LRHUDA 1993

      20. 20.In section 13(9) (initial notice for enfranchisement)—

      21. 21.Omit section 21(2)(c) (counter-notice for enfranchisement).

      22. 22.In section 22 (proceedings relating to validity of initial notice...

      23. 23.In section 24(1)(b) (applications in enfranchisement where terms in dispute...

      24. 24.In section 25(1)(b) (applications in enfranchisement on failure to give...

      25. 25.In section 33(4) (costs of enfranchisement), omit “23(4) or”.

      26. 26.In section 37A(8)(c)(i) (compensation for ineffective enfranchisement claim), omit “23(4),”....

      27. 27.In section 42(7) (notice of extension)— (a) omit paragraph (b)...

      28. 28.Omit section 45(2)(c) (counter-notice for extension).

      29. 29.In section 46 (proceedings relating to validity of notice for...

      30. 30.In section 48(1)(b) (applications in extension where terms in dispute...

      31. 31.In section 49(1)(b) (applications in extension on failure to give...

      32. 32.In section 54(6) (suspension of extension during enfranchisement)—

      33. 33.In section 60(4) (costs incurred in connection with new lease),...

      34. 34.In section 61A(6)(a) (compensation for ineffective extension claim), omit “47(1)...

      35. 35.In section 62(3)(a) (definitions), omit “47 or”.

      36. 36.In section 74 (effect of scheme applications on claims)—

      37. 37.In Schedule 1 (conduct of proceedings by reversioner), omit paragraph...

      38. 38.In Schedule 2 (special categories of landlord), in paragraph 2,...

      39. 39.In Schedule 11 (procedure where competent landlord is not tenant’s...

    4. Schedule 4

      Determining and sharing the market value

      1. Part 1 Introduction

        1. 1.Determination and sharing of market value for purposes of section 37

      2. Part 2 The market value

        1. 2.Freehold enfranchisements: the basis of the market value

        2. 3.Lease extensions: the basis of the market value

        3. 4.How the market value is determined

      3. Part 3 Determining the market value

        1. 5.Compulsory use of the standard valuation method

        2. 6.Tenant holding over or unexpired term of 5 years or less

        3. 7.Home finance plan leases

        4. 8.Market rack rent leases

        5. 9.Property included in the acquisition of a freehold house under section 2(4) of the LRA 1967

        6. 10.Leases already extended under the old law in the LRA 1967

        7. 11.Business tenancies

        8. 12.Acquisition of a freehold house under the LRA 1967: shared ownership leases

        9. 13.Collective enfranchisement: property other than relevant flats etc and appurtenant property

        10. 14.Voluntary use of the standard valuation method

        11. 15.Property that is “subject to the standard valuation method”

      4. Part 4 Assumptions and other matters affecting determination of market value

        1. 16.Application of this Part of this Schedule

        2. 17.Assumptions in all cases: intermediate leases merged and no marriage or hope value

        3. 18.Additional assumption on transfer of freehold house or lease extension: repairing obligations and improvements

        4. 19.Additional assumptions on collective enfranchisements: repairing obligations, improvements & leasebacks

        5. 20.Any determination of market value: specified matters to be taken into consideration

        6. 21.Any determination of market value: current lease gives rise to a right to hold over

        7. 22.Standard valuation method: other matters

        8. 23.Enfranchisement of house or lease extension: tenant with superior lease

      5. Part 5 The standard valuation method

        1. 24.Introduction

        2. 25.Step 1: determine the value of right to receive rent (the “term value”)

        3. 26.Rent (including a notional capped rent) that is to be used for determining the term value

        4. 27.Step 2 (freehold enfranchisement): determine the value of the freehold reversion (the “reversion value”)

        5. 28.Step 2 (lease extensions): determine the value of a 990 year lease (the “reversion value”)

        6. 29.Step 3: calculate the market value of the newly owned premises subject to the standard valuation method

      6. Part 6 Entitlement of eligible persons to shares of the market value

        1. 30.Entitlement and calculation of share

        2. 31.Freehold enfranchisements: the “eligible persons” and “qualifying transactions”

        3. 32.Lease extensions: the “eligible persons” and “qualifying transactions”

        4. 33.The loss suffered

        5. 34.Interpretation

      7. Part 7 Determining the term value

        1. 35.Introduction

        2. 36.Lease not subject to a rent review

        3. 37.Lease subject to a rent review with fixed changes

        4. 38.Lease subject to any other rent review

        5. 39.Interpretation

    5. Schedule 5

      Other compensation

      1. 1.Application of this Schedule

      2. 2.Compensation payable

    6. Schedule 6

      Schedules 4 and 5: interpretation

      1. 1.Provision to be construed as one with existing enfranchisement legislation

      2. 2.Meaning of specific expressions

      3. 3.Expressions with different meanings in relation to different statutory grants or leases

    7. Schedule 7

      Amendments consequential on sections 35 to 37 and Schedules 4 to 6

      1. 1.Involvement of other landlords: the LRA 1967

      2. 2.Involvement of other landlords: collective enfranchisement under the LRHUDA 1993

      3. 3.(1) Schedule 1 to the LRHUDA 1993 (conduct of proceedings...

      4. 4.In Schedule 8 to the LRHUDA 1993 (discharge of mortgages...

      5. 5.Involvement of other landlords: new lease under the LRHUDA 1993

      6. 6.(1) Schedule 11 to the LRHUDA 1993 (procedure where competent...

      7. 7.Other consequential amendments to the LRA 1967

      8. 8.In section 8(1) (obligation to enfranchise), after “price” insert “payable...

      9. 9.Omit section 9A (compensation payable in cases where right to...

      10. 10.In section 19(10)(b) (price subject to local management scheme), for...

      11. 11.In section 23(5)(b) (terms of extended tenancy), omit “section 9(1)...

      12. 12.In section 24(1) (application of price), for “under section 9...

      13. 13.In section 31 (ecclesiastical property)— (a) in subsection (2)(a), after...

      14. 14.Other consequential amendments to the LRHUDA 1993

      15. 15.In section 13(3) (initial notice), for paragraph (d) substitute—

      16. 16.In section 18(2) (duty to disclose agreements)—

      17. 17.In section 27 (vesting orders under section 26: supplementary provision)—...

      18. 18.In section 32 (determination of price)— (a) in subsection (2),...

      19. 19.In section 39(1) (right to acquire new lease), for “a...

      20. 20.In section 42(3)(c) (notice to acquire new lease)—

      21. 21.In section 48(7) (applications where terms in dispute etc), for...

      22. 22.In section 51 (vesting orders under section 50: supplementary provision)—...

      23. 23.In section 56 (obligation to grant new lease)—

      24. 24.Omit section 66 (amendments to the LRA 1967).

      25. 25.In section 70(12) (estate management schemes)— (a) in paragraph (b),...

      26. 26.In section 73(10) (applications for estate management schemes), for the...

      27. 27.(1) Schedule 2 (special categories of landlords) is amended as...

      28. 28.(1) Schedule 5 (vesting orders under sections 24 and 25)...

      29. 29.Omit Schedule 15 (section 9 of the LRA 1967 as...

    8. Schedule 8

      Leasehold enfranchisement and extension: miscellaneous amendments

      1. Part 1 LRA 1967 and LRHUDA 1993: general

        1. 1.Repeal of section 18 of the LRHUDA 1993

        2. 2.Application of security of tenure provisions to extended leases

        3. 3.Required statements in extended leases

        4. 4.Redevelopment break rights in extended leases

        5. 5.Consequential amendments to the LRA 1967

        6. 6.Repeal of obsolete provision in section 19 of the LRA 1967

        7. 7.Orders and regulations under the LRA 1967

        8. 8.Reduction of rent under intermediate leases

        9. 9.In Schedule 11 to the LRHUDA 1993 (procedure where competent...

      2. Part 2 Shared ownership leases and the LRA 1967

        1. 10.Amendment of the LRA 1967

        2. 11.Repeal of exclusions of shared ownership leases from Part 1 of the LRA 1967

        3. 12.Rateable value limits and low rent tests not to apply to shared ownership leases

        4. 13.No right of enfranchisement for certain shared ownership leases

        5. 14.Inclusion of terms for sharing staircasing payments

        6. 15.Meaning of “shared ownership lease”

      3. Part 3 Shared ownership leases and the LRHUDA 1993

        1. 16.Amendment of the LRHUDA 1993

        2. 17.Repeal of special provision for shared ownership leases in definition of “long lease”

        3. 18.No right to collective enfranchisement for certain shared ownership leases

        4. 19.Tenant under shared ownership lease to have right to new lease

        5. 20.Consequential amendment

        6. 21.Collective enfranchisement: mandatory leaseback

        7. 22.Inclusion of terms for sharing staircasing payments

        8. 23.Meaning of “shared ownership lease”

      4. Part 4 Other legislation

        1. 24.Provision about “RTE companies”

    9. Schedule 9

      Part 2: consequential amendments to other legislation

      1. 1.Parliamentary Commissioner Act 1967

      2. 2.Leasehold Reform Act 1979

      3. 3.Local Government Act 1985

      4. 4.Housing Act 1985

      5. 5.Landlord and Tenant Act 1985

      6. 6.Housing and Planning Act 1986

      7. 7.Housing Act 1988

      8. 8.Local Government and Housing Act 1989

      9. 9.Local Government (Wales) Act 1994

      10. 10.Housing Act 1996

      11. 11.Commonhold and Leasehold Reform Act 2002

      12. 12.Finance Act 2003

      13. 13.Companies Act 2006

      14. 14.Enterprise and Regulatory Reform Act 2013

      15. 15.Immigration Act 2014

      16. 16.Consumer Rights Act 2015

      17. 17.Housing and Planning Act 2016

      18. 18.Tenant Fees Act 2019

      19. 19.Building Safety Act 2022

    10. Schedule 10

      Right to vary lease to replace rent with peppercorn rent

      1. 1.Right to vary lease to replace rent with peppercorn rent

      2. 2.Meaning of “qualifying lease” and exclusion of certain rent from the right to vary

      3. 3.Claiming the right to a peppercorn rent

      4. 4.Suspension of rent variation notices

      5. 5.Counter-notice

      6. 6.Application to appropriate tribunal where claim or terms not agreed

      7. 7.Variation of the lease

      8. 8.Reduction of rent under intermediate leases

      9. 9.Jurisdiction of the appropriate tribunal in relation to paragraph 8

      10. 10.Failure to vary lease

      11. 11.Missing landlord or third party

      12. 12.Circumstances in which notice ceases to have effect etc

      13. 13.Tenant’s liability for costs

      14. 14.Liability for costs: failed claims

      15. 15.Liability for costs: successful claims

      16. 16.Duty of landlord to give copies of the rent variation notice to superior landlords

      17. 17.Duty of superior landlord to give copies of the rent variation notice to other superior landlords

      18. 18.Actions of immediate landlord binding on other landlords

      19. 19.Duty of immediate landlord to conduct commutation claim on behalf of affected other landlords

      20. 20.Provisions of the LRHUDA 1993 that apply for the purposes of this Schedule

      21. 21.Regulations

      22. 22.Interpretation

    11. Schedule 11

      Part 4: consequential amendments

      1. Part 1 Amendments consequential on section 68

        1. 1.The LTA 1985 is amended in accordance with paragraphs 2...

        2. 2.In section 5 (information to be contained in rent books)—...

        3. 3.In section 10B(8) (regulations under section 10A), for the words...

        4. 4.In section 20 (consultation requirements)— (a) in subsection (4), for...

        5. 5.In section 20ZA (consultation requirements: supplementary)— (a) in subsection (3),...

        6. 6.In section 20E(4) (regulations under section 20D) for the words...

        7. 7.In section 20F(7) (limitation of service charges: excluded costs for...

        8. 8.In section 29 (meaning of “recognised tenants’ association”)—

        9. 9.In section 29A (tenants’ associations: power to request information about...

        10. 10.In section 30D(9) (liability for building safety costs), for the...

        11. 11.In section 31 (reserve power to limit rents)—

        12. 12.In section 35 (application to Isles of Scilly)—

        13. 13.In paragraph 7(5) of the Schedule (right to notify insurers...

      2. Part 2 Other consequential amendments

        1. 14.The LTA 1985 is amended in accordance with paragraphs 15...

        2. 15.In section 23A (effect of change of landlord)—

        3. 16.In section 26 (exception for tenants of certain public authorities)—...

        4. 17.In section 27 (exception for rent registered and not entered...

        5. 18.In Schedule 5 to the Housing and Planning Act 1986...

        6. 19.In Schedule 2 to the LTA 1987 (amendments to the...

        7. 20.In Schedule 11 to the Local Government and Housing Act...

        8. 21.In section 83 of the Housing Act 1996 (determination of...

        9. 22.In Schedule 1 to the Housing Grants, Construction and Regeneration...

        10. 23.In the CLRA 2002— (a) omit section 152 (statements of...

        11. 24.In Schedule 15 to the Housing Act 2004 (minor and...

        12. 25.In the Housing and Regeneration Act 2008 (service charges)—

        13. 26.In Schedule 9 to the Crime and Courts Act 2013,...

        14. 27.In the Housing (Wales) Act 2014 (anaw 7), in the...

        15. 28.In the Housing and Planning Act 2016, omit section 131...

        16. 29.In the BSA 2022— (a) in section 112 (implied terms...

    12. Schedule 12

      Redress schemes: financial penalties

      1. 1.Notice of intent

      2. 2.Right to make representations

      3. 3.Final notice

      4. 4.Withdrawal or amendment of notice

      5. 5.Appeals

      6. 6.Recovery of financial penalty

      7. 7.Proceeds of financial penalties

    13. Schedule 13

      Part 6: amendments to other Acts

      1. 1.Local Government Act 1974

      2. 2.(1) Section 33 (consultation between Local Commissioner and other Commissioners...

      3. 3.(1) Section 33ZA (collaborative working between Local Commissioners and others)...

      4. 4.In section 33ZB (arrangements for provision of administrative and other...

      5. 5.In section 34 (interpretation) in subsection (1), at the appropriate...

      6. 6.Housing Act 1996

      7. 7.Building Safety Act 2022