Legislation – Leasehold and Freehold Reform Act 2024

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Introduction

Part 1
Leasehold houses

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

2 Long residential leases of houses

3 Leases which have a long term

4 Series of leases whose term would extend beyond 21 years

5 Houses

6 Residential leases

7 Permitted leases

8 Permitted leases: certification by the appropriate tribunal

9 Permitted leases: marketing restrictions

10 Permitted leases: transaction warning conditions

11 Prescribed statements in new long leases

12 Restriction on title

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

14 Redress: application of the right to acquire

15 Redress: general provision

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

17 Enforcement by trading standards authorities

18 Financial penalties

19 Financial penalties: cross-border enforcement

20 Lead enforcement authority

21 General duties of lead enforcement authority

22 Enforcement by lead enforcement authority

23 Further powers and duties of enforcement authorities

24 Part 1: Crown application

25 Power to amend: permitted leases and definitions

26 Interpretation of Part 1

Part 2
Leasehold enfranchisement and extension

27 Removal of qualifying period before enfranchisement and extension claims

28 Removal of restrictions on repeated enfranchisement and extension claims

29 Change of non-residential limit on collective enfranchisement claims

30 Eligibility for enfranchisement and extension: specific cases

31 Acquisition of intermediate interests in collective enfranchisement

32 Right to require leaseback by freeholder after collective enfranchisement

33 Longer lease extensions

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

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

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

37 Enfranchisement or extension: new method for calculating price payable

38 Costs of enfranchisement and extension under the LRA 1967

39 Costs of enfranchisement and extension under the LRHUDA 1993

40 Replacement of sections 20 and 21 of the LRA 1967

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

42 Amendment of Part 1 of the LRHUDA 1993

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

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

45 Miscellaneous amendments

46 LRA 1967: preservation of existing law for certain enfranchisements

47 Part 2: consequential amendments to other legislation

Part 3
Other rights of long leaseholders

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

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

50 Costs of right to manage claims

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

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

Part 4
Regulation of leasehold

53 Extension of regulation to fixed service charges

54 Notice of future service charge demands

55 Service charge demands

56 Accounts and annual reports

57 Right to obtain information on request

58 Enforcement of duties relating to service charges

59 Limitation on ability of landlord to charge insurance costs

60 Duty to provide information about insurance to tenants

61 Duty of landlords to publish administration charge schedules

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

63 Right of tenants to claim litigation costs from landlords

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

65 Appointment of manager: power to vary or discharge orders

66 Appointment of manager: breach of redress scheme requirements

67 Leasehold sales information requests

68 Regulations under the LTA 1985: procedure and appropriate authority

69 LTA 1985: Crown application

70 Part 4: consequential amendments

71 Application of Part 4 to existing leases

Part 5
Regulation of estate management

72 Meaning of “estate management” etc

73 Estate management charges: general limitations

74 Limitation of estate management charges: reasonableness

75 Limitation of estate management charges: consultation requirements

76 Limitation of estate management charges: time limits

77 Determination of tribunal as to estate management charges

78 Demands for payment

79 Annual reports

80 Right to request information

81 Requests under section 80: further provision

82 Enforcement of sections 78 to 81

83 Meaning of “administration charge”

84 Duty of estate managers to publish administration charge schedules

85 Enforcement of section 84

86 Limitation of administration charges

87 Determination of tribunal as to administration charges

88 Codes of management practice: extension to estate managers

89 Notices of complaint

90 Appointment of substitute manager

91 Conditions for applying for appointment order

92 Criteria for determining whether to make appointment order

93 Appointment orders: further provision

94 Estate management: sales information requests

95 Effect of sales information request

96 Charges for provision of information

97 Enforcement of sections 95 and 96

98 Part 5: Crown application

99 Interpretation of Part 5

Part 6
Leasehold and estate management: redress schemes

100 Leasehold and estate management: redress schemes

101 Redress schemes: voluntary jurisdiction

102 Financial assistance for establishment or maintenance of redress schemes

103 Approval and designation of redress schemes

104 Redress schemes: no Crown status

105 Financial penalties

106 Financial penalties: maximum amounts

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

108 Lead enforcement authority: further provision

109 Guidance for enforcement authorities and scheme administrators

110 Part 6: amendments to other Acts

111 Interpretation of Part 6

Part 7
Rentcharges

112 Meaning of “estate rentcharge”

113 Regulation of remedies for arrears of rentcharges

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

114 Steps relating to remediation of defects

115 Remediation orders

116 Remediation contribution orders

117 Recovery of legal costs etc through service charge

118 Repeal of section 125 of the BSA 2022

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

Part 9
General

120 Interpretation of references to other Acts

121 Power to make consequential provision

122 Regulations

123 Extent

124 Commencement

125 Short title

SCHEDULES

Schedule 1 Categories of permitted lease

Schedule 2 Leasehold houses: financial penalties

Schedule 3 Eligibility for enfranchisement and extension: specific cases

Schedule 4 Determining and sharing the market value

Schedule 5 Other compensation

Schedule 6 Schedules 4 and 5: interpretation

Schedule 7 Amendments consequential on sections 35 to 37 and Schedules 4 to 6

Schedule 8 Leasehold enfranchisement and extension: miscellaneous amendments

Schedule 9 Part 2: consequential amendments to other legislation

Schedule 10 Right to vary lease to replace rent with peppercorn rent

Schedule 11 Part 4: consequential amendments

Schedule 12 Redress schemes: financial penalties

Schedule 13 Part 6: amendments to other Acts

Changes to legislation:

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Schedules

Schedule 9Part 2: consequential amendments to other legislation

Section 47

Parliamentary Commissioner Act 1967

1

In Schedule 4 to the Parliamentary Commissioner Act 1967 (relevant tribunals), in the entry relating to rent assessment committees, omit “and also known as leasehold valuation tribunals for the purpose of determinations pursuant to section 21(1), (2) and (3) of the Leasehold Reform Act 1967”.

Annotations:
Commencement Information

I1Sch. 9 para. 1 not in force at Royal Assent, see s. 124(3)

Leasehold Reform Act 1979

2

In section 1 of the Leasehold Reform Act 1979 (price of enfranchisement under the LRA 1967 not to be made less favourable by reference to superior interest), in subsection (1), after “the price payable on a conveyance for giving effect to that section” insert “, in a case where the price payable is determined under section 9(1) of that Act by virtue of section 7A of that Act,”.

Annotations:
Commencement Information

I2Sch. 9 para. 2 not in force at Royal Assent, see s. 124(3)

Local Government Act 1985

3

In Schedule 13 to the Local Government Act 1985 (residuary bodies)—

(a)

in paragraph 14(aa), at the end insert “, where it applies by virtue of section 7A or 32(5) of that Act”;

(b)

omit paragraph 17.

Annotations:
Commencement Information

I3Sch. 9 para. 3 not in force at Royal Assent, see s. 124(3)

Housing Act 1985

4

In the Housing Act 1985—

(a)

in section 115 (meaning of “long tenancy”)—

(i)

for subsection (2)(c) substitute—

“(c)

at the time it is granted, it complies with the specified requirements.”;

(ii)

after subsection (2) insert—

“(3)

The “specified requirements” are—

(a)

in the case of a tenancy granted before 11 December 1987, the requirements of the Housing (Exclusion of Shared Ownership Tenancies from the Leasehold Reform Act 1967) Regulations 1982 (S.I. 1982/62) (including where the tenancy was granted before those regulations came into force);

(b)

in the case of a tenancy granted on or after 11 December 1987 and before the 2024 Act commencement day, the requirements in paragraph 2 of Schedule 2 to the Housing Association Shared Ownership Leases (Exclusion from Leasehold Reform Act 1967 and Rent Act 1977) Regulations 1987 (S.I. 1987/1940);

(c)

in the case of a tenancy granted on or after the 2024 Act commencement day, requirements specified in regulations made by the appropriate authority.

(4)

The “2024 Act commencement day” is the day on which paragraph 11 of Schedule 8 to the Leasehold and Freehold Reform Act 2024 comes into force.

(5)

The appropriate authority” means—

(a)

in relation to England, the Secretary of State;

(b)

in relation to Wales, the Welsh Ministers.

(6)

Regulations under subsection (3)(c)

(a)

are to be made by statutory instrument;

(b)

may make provision generally or only in relation to specific cases;

(c)

may make different provision for different purposes or different areas;

(d)

may include supplementary, incidental, transitional or saving provision.

(7)

A statutory instrument containing regulations under this section is subject to annulment in pursuance of—

(a)

where it contains regulations made by the Secretary of State, a resolution of either House of Parliament;

(b)

where it contains regulations made by the Welsh Ministers, a resolution of Senedd Cymru.”;

(b)

omit section 175 (determination of price payable on enfranchisement under LRA 1967 where tenancy created under right to buy).

Annotations:
Commencement Information

I4Sch. 9 para. 4 not in force at Royal Assent, see s. 124(3)

Landlord and Tenant Act 1985

5

In section 26 of the LTA 1985 (exception to service charge restrictions for public authority tenants)—

(a)

for subsection (3)(c) substitute—

“(c)

at the time it is granted it complies with the specified requirements.”;

(b)

after subsection (3) insert—

“(4)

The “specified requirements” are—

(a)

in the case of a tenancy granted before 11 December 1987, the requirements of the Housing (Exclusion of Shared Ownership Tenancies from the Leasehold Reform Act 1967) Regulations 1982 (S.I. 1982/62) (including where the tenancy was granted before those regulations came into force);

(b)

in the case of a tenancy granted on or after 11 December 1987 and before the 2024 Act commencement day, the requirements in paragraph 2 of Schedule 2 to the Housing Association Shared Ownership Leases (Exclusion from Leasehold Reform Act 1967 and Rent Act 1977) Regulations 1987 (S.I. 1987/1940);

(c)

in the case of a tenancy granted on or after the 2024 Act commencement day, requirements specified in regulations made by the appropriate authority.

(5)

The “2024 Act commencement day” is the day on which paragraph 11 of Schedule 8 to the Leasehold and Freehold Reform Act 2024 comes into force.

(6)

Regulations under subsection (4)(c)

(a)

are to be made by statutory instrument;

(b)

may make provision generally or only in relation to specific cases;

(c)

may make different provision for different purposes or different areas;

(d)

may include supplementary, incidental, transitional or saving provision.

(7)

A statutory instrument containing regulations under this section is subject to the negative procedure.”

Annotations:
Commencement Information

I5Sch. 9 para. 5 not in force at Royal Assent, see s. 124(3)

Housing and Planning Act 1986

6

In Schedule 4 to the Housing and Planning Act 1986 (shared ownership leases), in paragraph 11 (transitional provisions and savings)—

(a)

in sub-paragraph (1), at the end insert “, subject to sub-paragraphs (1A) and (2);

(b)

for sub-paragraph (2) substitute—

“(1A)

The amendment made by paragraph 7 (repeal of section 140 of the Housing Act 1980) also applies in relation to leases granted before the commencement of this Schedule, except in cases where, under section 7A or 32(5) of the Leasehold Reform Act 1967, the Leasehold Reform Act 1967 has effect without the amendments made by the Leasehold and Freehold Reform Act 2024.

(2)

In those cases, this Schedule does not affect the operation of section 140 of the Housing Act 1980, the enactments applying that section or regulations made under it.”

Annotations:
Commencement Information

I6Sch. 9 para. 6 not in force at Royal Assent, see s. 124(3)

Housing Act 1988

7

In Schedule 17 to the Housing Act 1988 (minor and consequential amendments)—

(a)

omit paragraph 40;

(b)

omit paragraph 68.

Annotations:
Commencement Information

I7Sch. 9 para. 7 not in force at Royal Assent, see s. 124(3)

Local Government and Housing Act 1989

8

In paragraph 5 of Schedule 10 to the Local Government and Housing Act 1989 (security of tenure for long residential leases)—

(a)

in sub-paragraph (4), for the words from “unless” to the end substitute “unless—

(a)

the landlord is a relevant authority, and

(b)

the premises are required for relevant development.”;

(b)

after sub-paragraph (4) insert—

“(4A)

For those purposes—

(a)

relevant authority” means a person referred to in any paragraph of section 38(2) of the Leasehold Reform Act 1967;

(b)

“relevant development”—

(i)

in relation to a relevant authority other than a health authority, means development for the purposes (other than investment purposes) of that body;

(ii)

in relation to a relevant authority that is a health authority, means development for the purposes of the National Health Service Act 2006 or the National Health Service (Wales) Act 2006;

(iii)

in relation to a relevant authority that is a university body, also includes development for the purposes of any related university body;

(iv)

in relation to a relevant authority that is a local authority, also includes area development;

(c)

health authority” means—

(i)

NHS England;

(ii)

any integrated care board;

(iii)

any Local Health Board;

(iv)

any Special Health Authority;

(v)

any National Health Service trust;

(vi)

any NHS foundation trust;

(vii)

any clinical commissioning group;

(viii)

any Strategic Health Authority;

(ix)

any Primary Care Trust;

(d)

university body” and “related university body” have the same meaning as in section 29(6ZA) of the Leasehold Reform Act 1967;

(e)

local authority” has the same meaning as in section 29(5) of the Leasehold Reform Act 1967;

(f)

area development” means any development to be undertaken, whether or not by a local authority, in order to secure—

(i)

the development or redevelopment of an area defined by a development plan under the Planning and Compulsory Purchase Act 2004 as an area of comprehensive development;

(ii)

the treatment as a whole, by development, redevelopment or improvement, or partly by one and partly by another method, of any area in which the premises are situated.”

Annotations:
Commencement Information

I8Sch. 9 para. 8 not in force at Royal Assent, see s. 124(3)

Local Government (Wales) Act 1994

9

In Schedule 13 to the Local Government (Wales) Act 1994, in paragraph 24—

(a)

omit paragraph (b);

(b)

in paragraph (c), at the end insert “, where it applies by virtue of section 7A or 32(5) of that Act”.

Annotations:
Commencement Information

I9Sch. 9 para. 9 not in force at Royal Assent, see s. 124(3)

Housing Act 1996

10

In the Housing Act 1996—

(a)

omit section 109 (collective enfranchisement: valuation);

(b)

omit section 110 (lease extension for flats: valuation);

(c)

in Schedule 10 (consequential amendments)—

(i)

in paragraph 6, omit sub-paragraph (4);

(ii)

omit paragraph 18;

(d)

in Schedule 11 (compensation for postponement of termination in connection with ineffective claims)—

(i)

in paragraph 2, omit sub-paragraph (2);

(ii)

in paragraph 3, omit sub-paragraph (2).

Annotations:
Commencement Information

I10Sch. 9 para. 10 not in force at Royal Assent, see s. 124(3)

Commonhold and Leasehold Reform Act 2002

11

In the CLRA 2002—

(a)

omit section 126 (collective enfranchisement: valuation date);

(b)

omit section 127 (collective enfranchisement: freeholder’s share of marriage value);

(c)

omit section 128 (collective enfranchisement: disregard of marriage value for very long leases);

(d)

in section 130 (lease extension for flats: residence test), omit subsection (2);

(e)

omit section 132 (lease extension for flats: personal representatives);

(f)

omit section 134 (lease extension for flats: valuation date);

(g)

omit section 135 (lease extension for flats: freeholder’s share of marriage value);

(h)

omit section 136 (lease extension for flats: disregard of marriage value for very long leases);

(i)

in Schedule 13 (leasehold valuation tribunals), omit paragraph 15.

Annotations:
Commencement Information

I11Sch. 9 para. 11 not in force at Royal Assent, see s. 124(3)

Finance Act 2003

12

In the Finance Act 2003—

(a)

in Schedule 4 (stamp duty land tax: chargeable consideration), for paragraph 16C substitute—

“16C

The following do not count as chargeable consideration—

(a)

costs borne by the purchaser under section 9(4) of the Leasehold Reform Act 1967, where it applies by virtue of section 7A of that Act;

(b)

any amount payable by the purchaser under section 19C of the Leasehold Reform Act 1967;

(c)

any amount payable by the purchaser under section 89C or 89D of the Leasehold Reform, Housing and Urban Development Act 1993.”;

(b)

in Schedule 17A (leases: further provision), in paragraph 10 (tenants’ obligations etc that do not count as chargeable consideration), for sub-paragraph (1)(f) substitute—

“(f)

any liability of the tenant for costs under section 14(2) of the Leasehold Reform Act 1967, where it applies by virtue of section 32(5) of that Act;

(fa)

any amount payable by the tenant under section 19C of the Leasehold Reform Act 1967 or section 89F of the Leasehold Reform, Housing and Urban Development Act 1993;”.

Annotations:
Commencement Information

I12Sch. 9 para. 12 not in force at Royal Assent, see s. 124(3)

Companies Act 2006

13

In section 1181 of the Companies Act 2006 (access to constitutional documents of RTE and RTM companies)—

(a)

in the heading, omit “RTE and”;

(b)

in subsection (1), omit paragraph (a);

(c)

in subsection (4), omit the definition of “RTE companies”.

Annotations:
Commencement Information

I13Sch. 9 para. 13 not in force at Royal Assent, see s. 124(3)

Enterprise and Regulatory Reform Act 2013

14

In section 84 of the Enterprise and Regulatory Reform Act 2013 (redress schemes: property management work), in subsection (10), omit the words from “or which” to the end.

Annotations:
Commencement Information

I14Sch. 9 para. 14 not in force at Royal Assent, see s. 124(3)

Immigration Act 2014

15

In Schedule 3 to the Immigration Act 2014 (excluded residential tenancy agreements), in paragraph 13(2)(a), omit the words from “or which” to the end.

Annotations:
Commencement Information

I15Sch. 9 para. 15 not in force at Royal Assent, see s. 124(3)

Consumer Rights Act 2015

16

In section 88 of the Consumer Rights Act 2015 (duty of letting agents to publicise fees: supplementary provisions), in subsection (1), in the definition of “long lease”, omit paragraph (a)(ii) and the “or” preceding it.

Annotations:
Commencement Information

I16Sch. 9 para. 16 not in force at Royal Assent, see s. 124(3)

Housing and Planning Act 2016

17

In Schedule 10 to the Housing and Planning Act 2016 (leasehold enfranchisement and extension: calculations)—

(a)

omit paragraph 4;

(b)

omit paragraph 5.

Annotations:
Commencement Information

I17Sch. 9 para. 17 not in force at Royal Assent, see s. 124(3)

Tenant Fees Act 2019

18

In section 28 of the Tenant Fees Act 2019 (interpretation), in subsection (1), in the definition of “long lease”, omit paragraph (b) and the “or” preceding it.

Annotations:
Commencement Information

I18Sch. 9 para. 18 not in force at Royal Assent, see s. 124(3)

Building Safety Act 2022

19

In Schedule 8 to the BSA 2022 (remediation costs), in paragraph 6 (permitted maximum)—

(a)

in sub-paragraph (5), omit “total” in each place it occurs;

(b)

in sub-paragraph (8)—

(i)

for “total” substitute “tenant’s”;

(ii)

for “section 7” substitute “section 101(1)”.

Annotations:
Commencement Information

I19Sch. 9 para. 19 not in force at Royal Assent, see s. 124(3)