Business

Leak of leasehold reform delays sparks industry calls for stability and clarity

Thursday, 30 October 2025 5:04AM UTC

The partial implementation of the 2024 Leasehold and Freehold Reform Act has created market uncertainty, prompting industry experts to warn against rushed reforms and emphasise the importance of careful, collaborative change for England’s leasehold system.

The leasehold system in England is widely acknowledged as requiring reform, with the existing framework seen as flawed in several respects. The recently enacted 2024 Leasehold and Freehold Reform Act (LAFRA) was introduced as a significant step towards fairer ownership, aiming to reduce premiums for lease extensions and freehold purchases for leases under 80 years, improve transparency in service charges, and expand the scope of buildings qualifying for the Right to Manage (RTM). However, apart from the RTM changes, much of the legislation has yet to come into force and remains subject to potential amendments through secondary legislation and the upcoming Leasehold and Commonhold Reform Bill. This partial implementation has already introduced significant uncertainty into the market, affecting leaseholders, freeholders, developers, lenders, and managing agents. Industry experts caution against further rushed reforms, emphasising the need for clarity and stability rather than speed, especially given the complex landscape that has evolved over many years.

Leasehold remains a mainstream tenure in England, accounting for about 20% of homes nationwide and over half in London, encompassing private apartments, shared ownership schemes, retirement developments, and mixed-use properties. Despite its criticisms, the leasehold system provides vital rights and structures that enable large, multi-occupancy buildings to operate safely and with defined maintenance responsibilities. The enfranchisement process and no-fault rights to manage offer leaseholders legal pathways to influence their ownership. Many professionals argue that while the system requires refinement, it does not necessitate wholesale replacement. The reforms introduced in LAFRA were well-intentioned but hastily implemented, leading to confusion and delays in embedding new regulations. Conveyancers, in particular, find it challenging to advise clients accurately amid unclear secondary legislation, which threatens longer transaction times and greater liability risks.

Commonhold, the government’s proposed alternative tenure to leasehold, presents an attractive concept of collective ownership. Supporters within the legal and property sectors acknowledge its potential but warn it is not yet a viable substitute. Commonhold requires significant legal, financial, and cultural shifts; mortgage lenders remain cautious, developers see limited incentives, and many agents are more experienced with leasehold. Without addressing these barriers, a forced transition to commonhold could hinder housing supply and introduce additional risks. Advocates suggest an evolutionary approach, with commonhold introduced gradually and supported by robust guidance and phased adoption to ensure it complements rather than disrupts the existing system.

Collaboration across government, legal professionals, valuers, lenders, and leaseholders is crucial for meaningful reform. Organisations such as the Association of Leasehold Enfranchisement Practitioners (ALEP) play a pivotal role in translating reform ambitions into workable law. Leasehold reform has often been portrayed as a conflict between leaseholders and freeholders, but this binary framing oversimplifies complex issues and can undermine market confidence. In reality, many leasehold arrangements function well when managed transparently and responsibly. Policymakers are encouraged to target specific problems such as excessive service charges, poor communication, and exploitative lease terms, rather than dismantling entire systems. Promises to abolish leasehold entirely are seen as impractical given the vast number of existing leases and the intricacies involved in transitioning to commonhold on a large scale.

Unintended consequences of incomplete and poorly managed reform are already evident. Media speculation and shifting political narratives have shaken buyer and lender confidence. Valuation uncertainties and ground rent caps are complicating transactions, while the lack of clear plans for commonhold adoption discourages developers from pursuing the model. Conveyancers are on the front line, navigating evolving legislation and advising concerned clients amidst a climate of uncertainty, underscoring the profession’s urgent need for clarity and consistent guidance.

Ultimately, the goals of leasehold reform—to create a simpler, fairer, and more transparent system—are widely shared across the sector. Achieving these aims, however, depends on patient, measured implementation combined with thorough consultation and open dialogue among stakeholders. At a recent ALEP conference, the consensus was clear: progress is needed but must not come at the cost of stability and clarity. Well-executed reform can restore trust, strengthen the housing market, and support government aspirations for growth, but poorly managed change risks long-term disruption and damage. The success of the ongoing reform process hinges less on speed and more on collaborative, careful delivery.

📌 Reference Map:

Paragraph 1 – ^[1] (Today’s Conveyancer), ^[3] (GOV.UK), ^[4] (GOV.UK)
Paragraph 2 – ^[1] (Today’s Conveyancer), ^[2] (GOV.UK), ^[5] (GOV.UK)
Paragraph 3 – ^[1] (Today’s Conveyancer), ^[7] (GOV.UK)
Paragraph 4 – ^[1] (Today’s Conveyancer), ^[6] (GOV.UK)
Paragraph 5 – ^[1] (Today’s Conveyancer), ^[2] (GOV.UK), ^[3] (GOV.UK)
Paragraph 6 – ^[1] (Today’s Conveyancer), ^[3] (GOV.UK), ^[6] (GOV.UK)

Source: Noah Wire Services

More on this

https://todaysconveyancer.co.uk/need-balanced-authoritative-approach-leasehold-reform-sector-demands-clarity-not-speed/ - Please view link - unable to able to access data
https://www.gov.uk/government/news/millions-of-leaseholders-backed-with-strengthened-rights - The UK government has introduced reforms to strengthen the rights of leaseholders, enabling them to better challenge excessive service charges. These measures aim to provide leaseholders with standardised service charge documentation, enhancing transparency and accountability in the leasehold system.
https://www.gov.uk/government/news/leasehold-reforms-give-more-rights-and-protections-to-homeowners - The Leasehold and Freehold Reform Bill, introduced to Parliament, seeks to offer homeowners a fairer deal by making it easier and cheaper for leaseholders to buy their freehold or extend their lease. It also aims to increase transparency over service charges and rebalance the legal costs regime.
https://www.gov.uk/guidance/amendments-to-the-building-safety-act-introduced-through-the-leasehold-freehold-reform-act-2024 - The Leasehold and Freehold Reform Act 2024 has introduced amendments to the Building Safety Act 2022, including provisions related to the cost of litigation, notification of insolvency, and remediation orders, to enhance building safety and leaseholder protections.
https://www.gov.uk/government/publications/leasehold-home-ownership-exercising-the-right-to-manage - The Law Commission's report on the right to manage provides recommendations to reduce the costs and complexity of making a Right to Manage claim, aiming to give leaseholders more control over the management of their buildings.
https://www.gov.uk/government/news/sweeping-reforms-to-give-leaseholders-more-powers-and-protections - The UK government has announced reforms to grant leaseholders greater rights and protections, including measures to make it easier for leaseholders to buy their freehold or extend their lease, and to take over the management of their building.
https://www.gov.uk/government/consultations/reforming-the-leasehold-and-commonhold-systems-in-england-and-wales/reforming-the-leasehold-and-commonhold-systems-in-england-and-wales - The UK government's consultation on reforming the leasehold and commonhold systems in England and Wales seeks views on proposals to improve access to enfranchisement and the right to manage, and to reinvigorate commonhold as an alternative to leasehold.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative was published on 30 October 2025, making it current. The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24 May 2024, with most provisions yet to come into force. ([gov.uk](https://www.gov.uk/government/news/leasehold-reforms-become-law?utm_source=openai)) The article discusses the need for clarity and stability in implementing these reforms, highlighting ongoing uncertainties. No evidence of recycled content or republishing across low-quality sites was found. The article appears to be based on original reporting.

Quotes check

Score: 9

Notes: The article includes direct quotes from Shabnam Ali-Khan, Partner at Russell-Cooke and member of ALEP. A search for these quotes did not reveal any earlier usage, suggesting they are original to this piece. No discrepancies in wording were found.

Source reliability

Score: 7

Notes: The narrative originates from Today's Conveyancer, a publication focused on the conveyancing industry. While it is a specialised source, it is not as widely recognised as major outlets like the BBC or Reuters. The publication's focus on the conveyancing sector suggests a degree of expertise, but its limited reach may affect the broader reliability assessment.

Plausability check

Score: 8

Notes: The article's claims align with known facts about the Leasehold and Freehold Reform Act 2024, including its enactment and the ongoing implementation challenges. The discussion about the need for a balanced approach to leasehold reform is consistent with industry concerns. No significant inconsistencies or implausible claims were identified.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is current, with original quotes and consistent with known facts about the Leasehold and Freehold Reform Act 2024. While the source is specialised, it provides a credible perspective on the need for clarity in implementing leasehold reforms.

Leasehold reform
Housing market
Property law