Leasehold Reform 2024: What Are the Implications in 2026?

The Leasehold Reform 2024 (now the Leasehold and Freehold Reform Act 2024) is now UK law and is set to introduce gradual changes, including longer lease extensions, lower ground rents, the ability to acquire freehold and the right to management, greater transparency over building management and costs, and more.

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The UK leasehold landscape is currently undergoing a major legal shift with the passage of the Leasehold and Freehold Reform Act 2024.

As of early 2026, the full impact of this law is yet to be felt. Some provisions of the law are already in force, while others await implementation through secondary legislation. It would take a few years, and reforms are expected to continue evolving it.

Unlike earlier versions, this new law introduces changes that will be gradually implemented in England and Wales. Leaseholders should seek legal advice from conveyancing lawyers or leasehold solicitors before making final property decisions to ensure complete compliance.

At Muve, we have observed clients pausing to reassess their decisions, especially around lease extensions. With timing directly affecting cost outcomes, understanding the implications of this law is crucial in a leasehold property transaction.

Let’s take a look at the major provisions of the Leasehold Reform 2024 law, the impact on the property market in England and Wales, as well as the benefits, drawbacks, and what to anticipate in the coming years.

The Act’s Main Provisions

The Leasehold and Freehold Reform Act 2024 introduces reforms in England and Wales to improve fairness and transparency for leaseholders. The important details are as follows:

• Leaseholders can extend their lease to 990 years, and ground rent can be reduced to almost zero financial value.
• Presents a cheaper and easier way for leaseholders to extend their lease or buy their freehold, including the removal of marriage value payments.
• More leaseholders across England and Wales may now qualify to extend leases, buy the freehold, or get the right to building management.
• Stronger transparency for service charges, insurance commissions, and administration fees.
• Leaseholders have better rights to get detailed information about building management processes and costs.
• Freehold homeowners on private or mixed-tenure estates have the right to challenge estate charges and service standards.
• Provides measures to restrict the creation of new leasehold houses and reinforce the shift away from leasehold ownership structures

As of early 2026, implementation is still underway, so costs may vary until it is finalised. Some provisions, such as permission to extend the lease or buy freehold without waiting 2 years, took effect on 31 January 2025, while the Right to Manage took effect on 3 March 2025.

Make sure to consult your conveyancing lawyer to clarify any associated costs based on the timeline of your leasehold property purchase.

What This Means for Property Owners in England and Wales

Upon full implementation of this law, current leaseholders in England and Wales will enjoy a more transparent, secure, and cost-efficient ownership. The reforms apply across both countries, although different jurisdictions may affect notices and document requirements.

The Leasehold Reform (Ground Rent) Act 2022 already applies across England and Wales, where ground rent on new long residential leases is already banned. But if your property is in Wales, check the differences from the Welsh government’s guide for leaseholders (including landlords and agents), to get location-specific implementation details and processes.

The impact of the Leasehold Reform 2024 can be felt in areas where there’s a high percentage of leasehold properties. This includes:

• Urban centres such as London, Birmingham, and Manchester, where leasehold flats are common
• North West region, where leasehold houses are popular
• New-build developments that include leasehold or shared ownership structures

Buyer demand and mortgageability in leasehold-heavy markets will be affected, with the greatest impact coming from service charges, ground rent structures, and lease length.

Market Impact of the Leasehold Reform

The Leasehold and Freehold Reform Act 2024 is expected to influence property markets across England and Wales, specifically the overall appeal of leasehold property ownership.

Industry experts describe it as the “biggest shake-up in leasehold,” despite the uncertainty surrounding the pace of its implementation.

Benefits of the Reform

Among the key benefits of the Leasehold Reform 2024 are:

• Reduces the need for repeat extensions
• Lowers long-term costs (e.g., ground rent)
• Clarity in service charges and management practices
• Better leaseholder rights, specifically in challenging unreasonable costs

The increase in transparency will improve the buyers and lenders’ confidence in leasehold properties, especially those who have previously been affected by unclear service charges and high ground rent.

Challenges and Limitations

Currently, the reforms have yet to be fully implemented. This poses the biggest challenge because it creates uncertainty among buyers and sellers.

For instance, leaseholders with leases approaching 80 years are about to make a key decision. When a lease falls below 80 years, “marriage value” significantly increases the extension cost. The reform seeks to remove this, but timing a leasehold purchase matters if you want to save on costs.

It can also bring adjustment issues for freeholders, developers, and managing agents.

The phased implementation might also affect property transaction costs, leading to complexities that could delay them. We see some property transactions slow down as buyers wait for clarity on implementation policies.

Waiting to see how lease extension costs or service charge structures will change delays the conveyancing process and increases the risk of incurring additional costs.

Winners and Losers in the Leasehold Shake-Up

Leaseholders in England and Wales are the clear winners when the Leasehold Reform 2024 is fully implemented. They gain stronger rights, long-term security, and more control over property management. This means leasehold properties are no longer just an investment opportunity. Leaseholders are empowered to be more involved in property management to increase return on investment.

On the other hand, freeholders, developers, and investors will be negatively affected by lower returns as ground rent becomes limited, potentially disrupting property investment funds or building developments. Increased regulations will also complicate leasehold management.

This shows how the reform rebalances the leasehold landscape to ensure fairer homeownership over investor-led structures.

Looking Ahead: The Next 1-5 Years

The Leasehold and Freehold Reform Act 2024 brings major reforms to property ownership across England and Wales that could take effect over the next 1 to 5 years. Discussions are ongoing, with some reforms still being finalised, such as the consideration of commonhold as a long-term alternative to leasehold ownership.

While details of the full implementation are still unclear, there are things you can do to stay ahead of the changes this law will bring.

Leaseholders or buyers seeking to purchase a leasehold property should take a proactive approach while they wait for the full implementation of the Leasehold and Freehold Reform Act 2024. Among the essentials to look into are the following:

• Review lease terms, especially those approaching 80 years.
• Seek legal advice before extending a lease to ensure that implementation timing won’t increase costs unnecessarily.
• Monitor legal updates to align property transactions with the implementation.
• Understand new leasehold obligations to keep up with ongoing reforms.

Get professional legal advice to confidently make the right property decisions. For instance, if your lease is close to 80 years, do not delay. Time your decision so you can save thousands of pounds as implementation is finalised.

Work with a conveyancing lawyer who understands the current leasehold rules and upcoming reforms.

Muve conveyancing lawyers are experienced in handling leasehold properties. We’ll help you understand your options so you can have the quickest conveyancing journey with no hidden or unnecessary costs. Get a conveyancing quote within minutes.