Summary

The Leasehold and Freehold Reform Act 2024 is a large piece of legislation aimed at rebalancing the relationship between leaseholders and freeholders/managing agents in England and Wales. Most of its headline provisions — easier lease extension and freehold purchase, restricting new leasehold houses, capping ground rent on some existing leases — are aimed at the conveyancing and property management side of the industry rather than at construction trades directly. But a subset of provisions does touch day-to-day trade work in leasehold blocks, particularly around how major works (the kind that trigger Section 20 consultation under the Landlord and Tenant Act 1985) are communicated and charged for, and around who is allowed to profit from arranging a block's buildings insurance.

The practical reason this matters for a plumber, electrician, roofer or general builder quoting or carrying out work in a leasehold block: service charge disputes and consultation failures are one of the most common reasons major works get delayed, scaled back, or contested after the event, and the Act is specifically designed to tighten up the transparency that currently causes those disputes. A tradesperson who understands the direction of travel — more paperwork, more disclosure, less scope for a managing agent to bury costs — is better placed to advise a freeholder or managing agent client on what documentation they'll need to produce, and to avoid being caught in the middle of a payment dispute caused by inadequate consultation.

It is important to be precise about what is actually law today versus what has been announced but not yet commenced. Implementation of the Act has been slower and more piecemeal than originally expected, partly because several of its provisions (particularly ground rent reform and the valuation rules for lease extension/enfranchisement) are legally complex and, in some cases, subject to ongoing legal challenge. Quoting a leaseholder, freeholder, or managing agent client on the basis of a provision that sounds confirmed in the press but isn't yet in force is a real risk — always check current commencement status rather than relying on general awareness of "the new leasehold law."

Key Facts

Quick Reference Table

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Provision Status (as of Oct 2026) Relevance to trades
Two-year ownership rule abolished In force (31 Jan 2025) Low — conveyancing/valuation issue
Right to Manage reforms In force (3 Mar 2025) Medium — changes who instructs works on some blocks
Building Safety Act litigation/remediation clarifications In force (Jul/Oct 2024) Medium — relevant on remediation jobs
Standardised service charge demand forms Not yet in force High — affects invoicing/documentation for major works
Annual building condition report Not yet in force High — may require trades to provide condition data to freeholders
Insurance commission ban / permitted fees Not yet in force Medium — affects who funds insurance-related repair work
Ground rent caps on existing leases Delayed, contested Low direct impact on trades
New leasehold houses largely banned Mostly in force for new sales Relevant mainly to housebuilders
Section 20 major works consultation (LTA 1985) Unchanged, still fully in force High — still the key trigger for major works tendering on leasehold blocks

Detailed Guidance

What to check before quoting major works in a leasehold block

Section 20 of the Landlord and Tenant Act 1985 — not itself changed by the currently-in-force parts of the 2024 Act — remains the core mechanism that determines how a freeholder or managing agent must consult leaseholders before carrying out works that will cost any individual leaseholder more than £250. If you're quoting as one of the nominated contractors in a Section 20 consultation, confirm with the managing agent that the statutory notice of intention and estimates stages have actually been completed and the timescales observed — a procedural failure here is a common cause of leaseholders successfully disputing liability for the service charge after work is complete, which can delay your payment even though the work itself was done correctly. This dynamic is exactly what the Act's transparency reforms are aimed at reducing once they come into force, but until they do, the existing Section 20 process is what governs the job.

The direction of travel on service charge transparency

Even though the standardised demand forms and annual condition reports aren't yet in force, freeholders and managing agents are increasingly moving towards more detailed, itemised reporting in anticipation of the coming requirement — driven partly by the government consultation response confirming the direction, and partly by leaseholder pressure. A tradesperson invoicing for major works on a leasehold block should expect to be asked for more detailed cost breakdowns (labour/materials split, itemised scope matching the original Section 20 estimate) than has historically been standard practice, and building this into your quoting and invoicing format now avoids friction later.

Insurance-funded repair work

Where repair work (storm damage, escape of water, fire damage) is being funded through the block's buildings insurance, be aware that the eventual insurance commission ban (not yet in force) is targeted specifically at freeholders and managing agents taking an undisclosed cut of the insurance premium — it does not restrict a tradesperson's normal quoted price for carrying out the repair itself. Cross-reference quoting for insurance work and storm damage for the separate practical considerations of pricing and invoicing insurance-funded repair work, which is unaffected by this reform.

Remediation work and the Building Safety Act interaction

The 2024 Act's already-in-force provisions on litigation costs and remediation order clarity (Sections 114–119) sit alongside, not instead of, the main Building Safety Act 2022 duty-holder and remediation framework. If you're working on cladding remediation or other historic building safety defect work, the relevant funding and process framework remains the Building Safety Act and Building Safety Fund — cross-reference building safety act 2022 and ews1 form cladding rather than treating the 2024 Act as the primary source for that work.

Frequently Asked Questions

Can a managing agent still take commission for arranging block insurance right now?

As of this article's verification date, yes — the insurance commission ban has been confirmed in principle by government but is not yet in force. Secondary legislation is expected through 2026 with implementation reported as likely from 2027. ****.

Does the Act change how Section 20 major works consultation works?

Not directly, as of the provisions currently in force. The core Section 20 mechanism under the Landlord and Tenant Act 1985 is unchanged. The Act's transparency reforms (standardised demand forms, annual reports) are designed to work alongside the existing Section 20 process once they come into force, not replace it.

Does this Act affect ground rent on my own leasehold flat if I'm a tradesperson who also owns one?

The Act contains powers to restrict or cap ground rent on some existing leases, but implementation of this specific strand has been delayed and is contested — as a leaseholder yourself, don't assume a ground rent cap currently applies without checking the latest status, which is distinct from your position as a tradesperson quoting work on a block.

Is this the same as the Renters' Rights Act?

No — they are entirely separate pieces of legislation covering different relationships. The Leasehold and Freehold Reform Act 2024 governs the relationship between leaseholders and freeholders/managing agents (ownership structure, service charges, insurance). The Renters' Rights Act 2025 (most provisions commencing from 1 May 2026) governs the relationship between landlords and tenants in the assured tenancy system (eviction grounds, rent, repairs). A property can be subject to both — a leaseholder landlord renting out a flat deals with the freeholder under leasehold law and with their tenant under renters' rights law. See renters reform bill impact for trades for the tenancy-side legislation.

Regulations & Standards