The UK Government plans to enact the remaining Law Commission recommendations on leasehold enfranchisement and Right to Manage, aiming to make these processes easier and more affordable for leaseholders. This is significant for landlords as it will affect how leasehold properties are managed and enfranchised, potentially altering the dynamics of property ownership and management responsibilities.

Background to Leasehold Reform

In July 2020, the Law Commission published three reports containing over 100 recommendations designed to improve leaseholders’ rights. These recommendations focus on extending leases, purchasing freeholds, and taking over the management of buildings through the Right to Manage (RTM) process. The intention is to empower leaseholders and simplify the enfranchisement process.

Some of these recommendations were partially enacted in the Leasehold and Freehold Reform Act 2024 (LAFRA), passed on 24 May 2024. However, many key proposals remain outstanding. The Government announced in July 2024 that it intends to proceed with further reforms, including enacting the remaining recommendations related to leasehold enfranchisement and RTM. A draft Leasehold and Commonhold Reform Bill is expected imminently.

Making Enfranchisement Cheaper and Easier

The Government’s reforms aim to make enfranchisement both cheaper and easier. “Cheaper” relates primarily to the valuation methodology and associated costs, which are included in LAFRA but currently face challenges from landlords. “Easier” refers to simplifying the qualifying criteria and procedural requirements, which have largely not been addressed so far.

For example, LAFRA abolished the two-year ownership requirement for extended lease and freehold house claims and increased the permissible commercial part from 25% to 50% for RTM claims. However, broader changes to qualifying criteria for collective enfranchisement have not yet been implemented.

Qualifying Criteria for Collective Enfranchisement

The Law Commission recommended relaxing the qualifying criteria for collective enfranchisement claims to enable more groups of leaseholders to acquire their building’s freehold. Key suggestions included increasing the commercial parts limit to 50%, consistent with RTM claims, and removing the two-flat limit that currently restricts leaseholders from qualifying.

The two-flat limit was originally intended to prevent investors from making collective claims, focusing instead on protecting homeowners. However, this restriction has had the unintended consequence of limiting homeowners’ enfranchisement rights. Additionally, the Law Commission proposed that all leaseholders should have the right to participate in collective claims to avoid disputes and ensure a collaborative process. This would help prevent situations where some leaseholders are excluded, often due to financial disparities among participants.

Streamlining the Enfranchisement Process

The Law Commission also highlighted the need to simplify the enfranchisement procedure. Currently, landlords sometimes use technicalities to delay or frustrate claims, increasing costs and valuations. To address this, the Commission recommended introducing prescribed forms for notices and responses, alongside granting tribunals greater powers to resolve disputes efficiently.

Another recommendation involves making the assignment of enfranchisement claims automatic. This would reduce disputes over the validity of assignments, which are often used tactically by landlords to increase costs and complicate proceedings. These procedural improvements could allow claimants to instruct solicitors with general leasehold expertise rather than specialists, reducing legal costs.

Implications for Landlords and Agents

For landlords and letting agents, these reforms could significantly affect leasehold property management. Easier and cheaper enfranchisement may lead to more leaseholders exercising their rights to extend leases or acquire freeholds, potentially reducing landlords’ control over their properties. The relaxation of qualifying criteria and procedural simplifications may also increase the number of enfranchisement claims.

Landlords should prepare for these changes by reviewing their leasehold portfolios and considering the potential impact on property management and income streams. Agents will need to advise clients accurately on the evolving legal landscape and the implications for leasehold properties.

Looking Ahead

The Government’s forthcoming draft Leasehold and Commonhold Reform Bill will be crucial in determining how these recommendations are implemented. Only by enacting the full suite of Law Commission proposals will enfranchisement become genuinely cheaper and easier, fulfilling the Government’s stated objectives.

Katherine Simpson is a Partner at Edwin Coe LLP and a member of the Association of Leasehold Enfranchisement Practitioners (ALEP).

Additional Update from TLA

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.