Housing Minister Confirms Leasehold and Freehold Reform Act (LFRA) 2024 Update.
In a written statement to Parliament the Housing Minister, Matthew Pennycook MP, has confirmed two main areas of the LFRA 2024 are being taken forward. The Government is therefore providing a response to parts of the Strengthening Leaseholder Protections consultation exercise, which was conducted last year.
Firstly, the Government has responded to the parts of the consultation on service charges, building insurance, and litigation costs. The Government’s intentions are to have the five statutory instruments on these measures finalised by the end of 2026. The timelines for many of the measures are to implement in 12 months or 24 months’ time (see response for which). Two exceptions are on notices of future demands, and on the right to obtain information on request, which the Government states will be implemented as soon as possible in 2027.
Secondly, the Government is consulting on enfranchisement measures that flow from the Act. One consultation looks at the capitalisation and deferment rates used for enfranchisement valuation purposes. The other consultation, at non-litigation process costs in enfranchisement.
The Minister’s statement does acknowledge that parts of the Strengthening Leaseholder Protections consultation still await a response, specifically mentioning the regulation of managing agents: "We will provide a separate response in due course in relation to the further reforms consulted upon that are outside the scope of the 2024 Act, including those that concern the regulation of managing agents."
Read the full statement HERE
Andrew Bulmer, Chief Executive Officer of The Property Institute, commented:
"Leaseholders have every right to understand what they are paying for and to challenge costs they believe are unreasonable. The measures announced by Government will give them tools to do that, and The Property Institute (TPI) will work with its members to support their effective implementation across the sector.
Greater transparency around service charges and stronger rights to access information are positive steps forward, giving leaseholders clearer insight into how their contributions are used to keep their homes and communities well maintained, well managed and safe.
Transparency must now be matched by consistent standards. Insight matters most to leaseholders when they can also have confidence that those managing their homes are competent and accountable. We look forward to the Government's response to the wider consultation, including proposals for mandatory qualifications for managing agents. Completing that picture is essential if leaseholders are to get the protection they deserve."
