, Cabinet Secretary for
Housing and Local Government: I am pleased to provide Members of
the Senedd with an update on the phased implementation of the
Leasehold and Freehold Reform Act 2024 and work towards important
future reforms.
The Act includes a wide range of changes, many of which rely on
further consultation and decisions about operational detail
before they may be commenced. I have set out elsewhere my
intention to work closely with UK Government on preparations for
implementation, in order that the benefits of the Act can apply
as quickly as possible here in Wales. Today I am pleased to let
you know about a number of provisions that have come into force,
as well as progress towards further important reforms. These all
represent real progress towards our Programme for Government
Commitment on leasehold.
Implementation of Leasehold and Freehold Reform Act
2024
Section 27 of the 2024 Act, regarding the removal of the
qualifying period for enfranchisement and extension claims, was
commenced on 31 January. This change means that homeowners no
longer need to wait for two years following purchase of their
leasehold property before exercising their rights to purchase the
freehold or extend their lease.
Further provisions in the Act relating to the Right to Manage
(RTM) were commenced on 3 March. Section 49 ‘change of
non-residential limit on right to manage claims' widens the
criteria for buildings to qualify for the right to those with no
more than 50% non-residential space, in place of the previous 25%
limit. Additionally, section 50 and the RTM provisions in section
64 remove the requirement for RTM companies to pay other parties'
costs when exercising the right, except in circumstances decided
by the tribunal. Sections 51 and 52 reflect a wider policy in the
Act to move the jurisdiction for leasehold cases from the court
to the Leasehold Valuation Tribunal in Wales.
The increase in the RTM non-residential limit has required an
update to RTM company model articles which are set out in
subordinate legislation. I have laid The RTM Companies (Model
Articles) (Wales) (Amendment) Regulations 2025, which also came
into force on 3 March, to amend voting rights in RTM companies so
that leaseholders will continue to be able to exercise a majority
vote in RTM decisions after the commencement of section 49.
As I have set out above, further consultation will be required to
inform the necessary subordinate legislation which needs to be
put in place before commencement of other parts of the Act. I
will keep Members up to date as this work progresses.
Future reforms
Building on these latest improvements in leaseholder rights, and
as I have set out previously, I am continuing to work closely
with the UK Government on further reforms. A Draft Leasehold and
Commonhold Reform Bill is due to be published later this year. As
part of this work, the UK Government has published a White Paper
setting out how a reformed Commonhold system could operate. The
White Paper sets out the vision for how Commonhold could in
future provide the viable alternative to leasehold in England and
Wales that it was always intended to be. I encourage interested
parties to read the White Paper, which may be found here:
Commonhold White Paper: The
proposed new commonhold model for homeownership in England and
Wales.
