By Thomas Palmer BA (Hons) MARLA, Head of Business Development at Watsons Property
Leasehold Reform & Lettings Legislation - Summer 2025
The property sector is undergoing a wave of legal and regulatory change in 2025, with landmark legislation now in force and further reforms on the horizon. From proposed updates to leasehold ownership to the long-awaited Renters’ Rights Bill, these changes are reshaping the landscape for homeowners, leaseholders, freeholders, developers, and managing agents alike.
In this blog, we will break down the latest legal developments – including the Leasehold and Freehold Reform Act, the progress of the Renters’ Rights Bill, and new consultations on service charge transparency. Whether you own, manage or invest in property, it’s essential to stay informed and prepared for what’s coming next.
Leasehold and Freehold Reform Act 2024
As part of the changes set out in the Leasehold and Freehold Reform Act 2024, further progress has been made in mid‑2025, including:
- New-build leasehold flats banned: The government continues its commitment to phase out leasehold for new homes, with consultative steps underway aimed at transitioning toward commonhold ownership – combining freehold tenure of multi-occupancy buildings with shared ownership of communal areas.
- Greater service-charge transparency: A consultation open until 26 September 2025 is seeking input on standardised service charge demands and building insurance policies to help tackle unfair fees.
- Ongoing legal challenge: A cohort of major freeholders (e.g., Cadogan, Grosvenor) seeked judicial review, questioning reforms to lease extension valuations and the removal of marriage-value calculations. The four-day hearing took place this month, but permission to intervene for leaseholder groups was rejected by the Court of Appeal.
Predicted impact for existing leaseholders
- Expanded rights underway: Following Royal Assent to the 2024 Act, nearly 5 million leaseholders now have enhanced powers to challenge unreasonable service charges through the First-Tier Tribunal and access standardised service charge documentation.
- Actions taken: Key reforms already effective include ending the 2‑year ownership requirement, abolishing marriage-value for leases under 80 years, and enabling leaseholders to buy out their ground rent (converting it to a peppercorn rent).
Renters’ Rights Bill 2025
Proposed reforms under the Renters’ Rights Bill are on course for Royal Assent in autumn 2025, with enforcement likely by early 2026. This will include:
- No-fault evictions banned, moving all tenancies to periodic rolling contracts.
- Only one rent increase per year, aligned with market norms, and no more rent bidding wars.
- Introduction of a national landlord register and Property Ombudsman for tenancy disputes.
- Improvements such as lifetime deposits, protections for pets, families, and benefits recipients, decent homes standard, and Awaab’s Law extended to PRS.
Building Safety Act (BSA) 2022
As many know, the Building Safety Act 2022 is a UK law that has been designed and launched to improve building safety standards and protect residents, particularly in higher-risk buildings. It has introduced significant changes to building regulations, accountability, and resident rights, with a focus on preventing tragedies like the Grenfell Tower fire.
Three years on, the Building Safety Act impact and oversight continues. As amended by the Leasehold and Freehold Reform Act 2024, significant changes to leasehold management responsibilities, particularly concerning building safety defects have been enacted.
Conclusion:
We appreciate that understanding the nuances and impact of each legislation, whilst staying up to date with ongoing reforms can be a challenge. Our fully-qualified team of property specialists are here to help you navigate this. We regularly attend industry-regulated training sessions, seminars, and consume authoritative media sources to offer the latest advice and knowledge.
Here’s a quick summary of what you can expect this summer:
- Leaseholders: expect clearer service-charge statements, strengthened enfranchisement rights, and longer-term clarity on commonhold.
- Managing agents & RMCs: align service-charge systems with upcoming transparency standards; prepare to advise on leasehold enfranchisement and commonhold pathways.
Contact Us
For further information on the current property market and ongoing legislation changes, or to speak with one of our experts, please email the following:
- Lettings: letting@watsons-property.co.uk
- Valuation & Survey Team: survey@watsons-property.co.uk
- Property Management:management@watsons-property.co.uk
Or call us on 0333 220 1234
