The Leasehold and Freehold Reform Act 2024, effective from 3 March, grants leaseholders in mixed-use developments greater control over their properties. A key change in Section 49 raises the non-residential threshold for Right to Manage (RTM) claims from 25% to 50%, expanding eligibility. Additionally, tenants will no longer be liable for the freeholder’s legal costs in these claims.

Housing Minister Matthew Pennycook stated that these reforms aim to empower leaseholders, reduce costs, and curb excessive charges. Legal experts note that while RTM increases transparency and control, it also brings added responsibilities, such as maintenance, insurance, and repairs. Landlords may face challenges in managing buildings, negotiating insurance, and handling disputes.

The changes are expected to increase demand for legal and property management advice, with professionals stressing the need for leaseholders and landlords to seek expert guidance to navigate the transition effectively.