In short
The Leasehold and Freehold Reform Act 2024 is being brought in stage by stage. The right to manage changes and the removal of the two-year wait for lease extensions are already in force. Service charge transparency and insurance commission reforms were confirmed in July 2026 and are expected to affect leaseholders during 2027. Commonhold, ground rent caps and managing agent qualifications are still proposals.
Already in force
- Lease extensions and freehold purchase: since 31 January 2025, leaseholders no longer need to have owned their flat for two years before making a statutory claim.
- Right to manage: since 3 March 2025, buildings with up to 50% non-residential floor space can qualify (previously 25%), each side generally bears its own costs, and disputes go to the First-tier Tribunal. More on RTM.
- Ground rent on new leases: most new residential leases granted since 30 June 2022 carry a peppercorn ground rent under the Leasehold Reform (Ground Rent) Act 2022.
- Insurance information: since 31 December 2023, FCA rules require insurers and brokers to act in leaseholders' interests and disclose policy and remuneration information.
Confirmed for 2027
On 15 July 2026 the government published its response to the 2025 consultation on strengthening leaseholder protections over charges and services. It confirmed its approach to the service charge measures in the 2024 Act, with several sets of regulations to be laid later in 2026 and leaseholders seeing changes during 2027. The main measures are:
- A standard, prescribed form for service charge demands.
- Standardised service charge accounts and an annual report to leaseholders.
- Clearer limits and a schedule for administration charges.
- Insurance transparency, with commissions replaced by defined permitted insurance payments.
- A rebalanced regime for litigation costs, so leaseholders are less exposed to landlords' legal costs.
Most of these measures are expected to have around 12 months' notice for private landlords before they apply. How we already report service charges.
Still proposed
- Commonhold: a draft Commonhold and Leasehold Reform Bill was published in January 2026, aiming to make commonhold the default for new flats and to make conversion easier for existing buildings.
- Ground rent on existing leases: a cap has been proposed but is not yet law.
- Lease extension valuation: the 2024 Act abolishes marriage value and introduces 990-year extensions, but these depend on regulations and valuation rates still being settled.
- Managing agent regulation: the government consulted in 2025 on mandatory qualifications for managing agents. No licensing regime is yet in place.
- Major works: reform of the Section 20 consultation regime has been consulted on, but the current rules still apply. Section 20 today.
What directors should do now
- Ask your managing agent how they will adapt demands, accounts and reporting for 2027.
- Check how the building's insurance is placed and what remuneration is paid, and to whom.
- If the building is mixed-use and was previously excluded from RTM, look again.
- Make sure your compliance records and year-end accounts are up to date. Greater transparency will expose gaps.
Last reviewed 2026-09-23 against the sources listed. This page is general information about England and is not legal advice; the lease for your building always comes first.