Big Changes in Leasehold and Freehold Laws: What You Need to Know Starting March 2025

If you're a landlord or tenant in England and Wales, mark your calendars for March 3, 2025. That's when key sections of the Leasehold and Freehold Reform Act 2024 will officially kick in, thanks to new regulations just signed by Minister Matthew Pennycook of the Ministry of Housing, Communities and Local Government. Here's a quick guide to what these changes mean for you:

1. Non-Residential Limit on Right to Manage Claims (Section 49): This provision alters the rules regarding how much of a building can be non-residential while still allowing leaseholders to claim the right to manage. This is crucial for those living in mixed-use buildings.

2. Costs of Right to Manage Claims (Section 50): New guidelines will address who bears the costs involved in pursuing the right to manage, potentially reducing financial barriers for leaseholders.

3. Compliance with 2002 Regulations (Section 51): This section ensures that obligations under the Commonhold and Leasehold Reform Act 2002 are being met. It's a legal refresh to make sure everyone’s playing by the rules.

4. High Court Applications (Section 52): From now on, first-instance applications related to these matters will not go directly to the High Court. This change aims to streamline the process and make it more accessible.

5. Restriction on Recovery of Non-Litigation Costs (Section 64): Specifically regarding the right to manage, this provision limits the recovery of certain non-litigation costs. It's a move that could save leaseholders money by reducing hidden fees.

These changes are part of a broader effort to reform housing laws in the UK, ensuring more fairness and clarity in leasehold and freehold relations. For those who want to dive deeper, a full impact assessment is available, offering comprehensive insights into how these changes could affect you. You can access it here.

Stay informed and be prepared for these upcoming changes to make the most of your rights and responsibilities under the new law.