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2025 Property Law Outlook: Leasehold and Commonhold Reforms, Renters’ Rights, Building Safety Appeals, 1954 Act Review, Terrorism Protection Duties, RICS Service Charges, and High Street Rental Auctions

Published on: 08 January 2025

Published by a LexisNexis Property expert
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Article summary

Residential leasehold reform

In November 2024, the Ministry of Housing, Communities and Local Government (MHCLG) unveiled a bold package of proposed leasehold changes slated for 2025, including commencement of the Leasehold and Freehold Reform Act 2024 (LFRA 2024) and further steps to reform leasehold and commonhold.

LFRA 2024

The government’s anticipated schedule for bringing LFRA 2024 into effect is:

  • In January 2025, the measure abolishing the ‘2-year rule’ is due to start, allowing leaseholders to extend their lease or buy their freehold without waiting two years after purchase
  • In spring 2025, right to manage reforms (broadening access, reshaping costs and voting rights) will take effect as one coherent package, enabling more leaseholders in mixed-use buildings to assume management from freeholders, and meaning leaseholders bringing claims will, in most instances, no longer meet their freeholder’s costs
  • In early 2025, the government will consult on the practical detail of LFRA 2024’s ban on buildings insurance remuneration—such as commissions for landlords, property managing agents and freeholders—being added to the service charge and their replacement with...

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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