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TL;DR
- The Leasehold and Freehold Reform Act 2024 became law on 24 May 2024, but most of it is not in force yet.
- In force now: the 2-year ownership rule is gone, so you can extend your lease or buy your house's freehold as soon as you own it. The right to manage is also easier and cheaper to use.
- Not in force: 990-year lease extensions, the end of marriage value, cheaper freehold purchases, ground rent buyouts and most service charge changes.
- The government says the lease extension and freehold changes cannot happen until a second law, the Commonhold and Leasehold Reform Bill, is passed.
- The 250 pound ground rent cap is in that draft Bill, not the 2024 Act. It is not law, and the government has said it could come in 2028.
Table of Contents
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1. What the Leasehold and Freehold Reform Act 2024 is
The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024. It applies to England and Wales and changes the rules for leaseholders in four main areas:
- extending a lease
- buying the freehold
- service charges, buildings insurance and management
- buying out ground rent.
Passing an Act and bringing it into force are different steps. The 2024 Act is being switched on in phases, and many parts need consultation and secondary legislation first. The Leasehold Advisory Service says it is not yet known when all the changes will happen.
2. What is already in force
A written ministerial statement in July 2026 lists commencements on 24 July 2024, 31 October 2024, 31 January 2025 and 3 March 2025. The changes leaseholders are most likely to notice are these.
2.1 The 2-year ownership rule has gone
From 31 January 2025, you no longer have to own a flat for 2 years before you can claim a statutory lease extension. House owners can also buy the freehold as soon as they own the property.
2.2 The right to manage is easier to use
From 3 March 2025, buildings with up to 50% commercial space can qualify for the right to manage, up from 25%. Leaseholders claiming it will not usually have to pay the freeholder's costs. Our guide to the right to manage covers how it works.
3. Lease extensions and marriage value
None of the main lease extension changes are in force yet. According to the Leasehold Advisory Service:
- Length: a statutory extension adds 90 years for a flat today. The Act would make it 990 years for flats and houses.
- Marriage value: if your lease has 80 years or less left, you currently pay an extra cost called marriage value when you extend. The Act would remove it.
- Costs: you usually pay the landlord's legal costs today. Under the Act, each side would usually pay their own non-litigation costs.
- Calculation: the premium would be worked out using a standard method instead of negotiation.
3.1 What marriage value is
Marriage value is the increase in a flat's value that comes from extending its lease. Once a lease falls to 80 years or less, part of that increase goes to the landlord, which makes extensions on shorter leases more expensive.
3.2 Where things stand
The government consulted in July 2026 on the valuation rates and on who pays the costs. Those consultations close in September and October 2026. The changes cannot be introduced until the Commonhold and Leasehold Reform Bill has been passed.
4. Buying the freehold
The freehold changes follow the same pattern. Not yet in force:
- no more marriage value when buying the freehold of a building with leases of 80 years or less
- flats in mixed-use buildings qualifying with up to 50% commercial space, up from 25%
- a standard way of calculating the price
- leaseholders no longer paying the landlord's legal costs, with some exceptions.
If you and your neighbours are thinking about buying the freehold together, our guide to share of freehold explains how the building is run afterwards.
5. Ground rent and the 250 pound cap
Three separate measures are often confused.
New leases since 2022
Most new leases granted from 30 June 2022, or 1 April 2023 for retirement properties, already have a peppercorn ground rent, which is effectively zero. That came from an earlier law, not the 2024 Act.
Ground rent buyout
The 2024 Act creates a right to pay a one-off sum to remove your ground rent, without extending your lease, if you have at least 150 years left. It is not in force yet.
The proposed cap
The draft Commonhold and Leasehold Reform Bill, published in January 2026, would cap existing ground rents at 250 pounds a year, then reduce them to a peppercorn after 40 years. It is a draft Bill, not law. The Leasehold Advisory Service reports the government has indicated the cap could come in 2028, subject to Parliament.
6. Service charges, insurance and management
The Act includes a set of changes to how buildings are run. According to the Leasehold Advisory Service, the plans include:
- service charge demands in a standard format, and an annual report on the building's condition and planned major works
- service charge accounts signed off by a qualified professional, with rights to information going back up to 6 years
- a transparent permitted insurance payment in place of unclear commissions on buildings insurance
- landlords needing approval before adding their tribunal legal costs to the service charge
- landlords who manage their own buildings joining a redress scheme.
The consultation response was published in July 2026. Regulations are expected later in 2026, and leaseholders should start to see changes during 2027. Until then, the current rules on service charge accounts and section 20 consultation still apply.
7. Is leasehold being abolished?
Not for existing homes. The draft Commonhold and Leasehold Reform Bill would ban leasehold for most new flats and make commonhold the default, so new flats would be owned without a landlord. It would also make it easier for existing leaseholders to convert to commonhold, and replace forfeiture with a new enforcement scheme.
The government has said it intends to introduce the Bill to Parliament before the end of 2026, and the new commonhold model could be available in 2029. The 2024 Act's own ban on new leasehold houses is also not in force yet.
8. What it means if you own or let a leasehold flat
Check your lease length
If your lease is close to 80 years, marriage value matters. The Leasehold Advisory Service suggests leaseholders with 80 years or less might wait for the reforms, while others may be better acting now. Get advice on your own figures.
Factor in the costs that stay
Service charges and ground rent come off your income if you let the flat, and that will not change until the new rules take effect.
The lease still decides how you let
None of these reforms change the user clauses in your lease. If it restricts the flat to use as a private residence, short lets can still be a breach. Our guide to freeholder responsibilities covers what to check.
If your lease allows short lets, Houst offers Airbnb management across the UK, and the income calculator shows what your flat could earn.
This guide is general information, not legal or tax advice. Speak to a qualified adviser about your situation.
Frequently asked questions
What is the status of the Leasehold and Freehold Reform Act 2024?
Has marriage value been abolished?
Are ground rents going to be abolished?
Should I wait for leasehold reform before extending my lease?
Will leasehold reform affect existing leaseholders?
Reviewed by Andrei S., Head of Growth at Houst, for regulatory accuracy and commercial relevance.
