What is the Leasehold & Freehold Reform Bill 2024?

Leasehold owners hold a lease for a fixed period, effectively renting the property from the freeholder. They pay ground rent and may be subject to service charges and other fees. Freehold owners have complete and indefinite ownership of the property and land, providing more control and autonomy than leasehold ownership.

“Marriage value”, a term unique to property law, refers to the increase in a property’s value following enfranchisement (the purchase of the freehold) or a lease extension. This value arises due to the extended lease or newly acquired freehold, enhancing the property’s marketability and desirability.

As defined in Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, this value uplift is often a point of contention between leaseholders and freeholders during negotiations for lease extensions or freehold purchases.

The Leasehold & Freehold Reform Act 2024 introduces several key changes, including the abolition of marriage value when calculating lease extension premiums. This makes the process more affordable for leaseholders, and a standardised calculation method further promotes fairness and transparency.

Additionally, the Act grants leaseholders enhanced rights to challenge unreasonable service charges and provide them with greater control over the management of their buildings, establishing a more equitable relationship between leaseholders and freeholders.

Key Changes in the Bill

The Leasehold & Freehold Reform Act 2024 introduces key changes aimed at helping leaseholders strengthen their rights. The changes include:

  • Simplified Enfranchisement: The process of converting a leasehold property to a freehold will be streamlined, making it easier and more accessible for leaseholders to gain full ownership.
  • Protecting Leaseholders: New provisions will protect leaseholders from unfair practices, such as excessive or hidden fees, ensuring transparency and accountability from freeholders and managing agents.
  • Ground Rent and Service Charge Regulation: The Act sets stricter rules for ground rents and service charges, promoting greater fairness and preventing leaseholders from facing unreasonable financial burdens.
  • Clearer Rights and Protections: Under the new legislation, leaseholders will have clearer rights and protections, enabling them to challenge unfair practices and seek redress more effectively.

How the Bill Affects Property Owners

The Act significantly benefits leaseholders by making lease extensions and freehold purchases more affordable. Removing marriage value and standardised calculation methods for premiums reduce costs, while enhanced rights empower them to challenge service charges and gain greater control over building management.

While the Act primarily focuses on leaseholder rights, it also affects freeholders. They may experience reduced income due to capped ground rents and the inability to charge marriage value. However, it encourages a more balanced relationship with leaseholders, promoting open communication and cooperation.

Both leaseholders and freeholders must adapt to the new regulations. Leaseholders are encouraged to proactively understand their rights, while freeholders need to ensure transparency and fairness. Familiarity with the updated legislation is crucial for navigating the changing landscape of property ownership.

Implications for Property Buyers

The Leasehold & Freehold Reform Act 2024 is poised to reshape the property landscape, making leasehold properties more appealing due to the abolition of marriage value and capped ground rents. This increased demand may increase prices for existing leasehold properties with favourable terms. Conversely, demand for freehold properties might decrease, potentially affecting their prices.

Buyers should carefully review lease terms, paying close attention to ground rent, service charges, and remaining lease length. Consulting with a legal professional specialising in property law is recommended. While lease extensions are now more affordable, long-term costs should be considered. Freehold properties offer more control but may have a higher initial purchase price.

Expert Insights on the Market

The Leasehold & Freehold Reform Act 2024 has generated diverse opinions among real estate professionals, with varying predictions on its impact.

Many anticipate a surge in demand for leasehold properties, especially those with shorter leases, due to the removal of marriage value in lease extensions. This could increase prices for these properties while decreasing demand for freehold properties.

Investors may need to adjust strategies as the Act might reduce the attractiveness of leasehold properties as investment assets due to capped ground rents and increased leaseholder rights. However, the increased demand for leasehold properties could also create opportunities for investors.

In the rental market, the Act’s impact is likely minimal in the short term. Long-term effects could emerge as more leaseholders transition to freehold ownership, potentially reducing rental supply.


What Property Owners Need to Do

Following the introduction of the Leasehold & Freehold Reform Act 2024, property owners need to carefully consider their next steps.



  • Review your lease agreement to understand your rights and obligations.
  • If eligible, consider converting your leasehold to freehold through the simplified enfranchisement process.
  • Seek legal advice for guidance on lease extensions and negotiations with your freeholder.
  • Stay informed about updates to the law and your rights as a leaseholder through Government updates.



  • Ensure compliance with new regulations concerning ground rents and service charges.
  • Establish and maintain open communication with leaseholders and address any concerns promptly.
  • Consult with legal and financial experts to understand the impact of the Act on your property portfolio.

For further information and support, refer to government guidance, seek advice from property solicitors, or contact relevant professional organisations.



The Leasehold & Freehold Reform Act 2024 ushers in significant changes, benefiting leaseholders through more affordable lease extensions, capping ground rents, and increased rights. Understanding these changes is crucial for lease and freeholders to navigate the evolving property landscape.

Leaseholders can now take greater control of their property ownership journey, while freeholders must adapt to the new regulations. Both parties should seek professional advice from legal and financial experts to fully understand the Act’s implications.

By staying informed and seeking guidance, property owners can confidently make informed decisions and thrive in this new era of property ownership.

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