Leasehold and Freehold Reform Act 2024 Explained: What Leeds Landlords Need to Know

Published: 07/02/2025

The Leasehold and Freehold Reform Act 2024 is one of the biggest shake-ups in the housing sector for years. It was designed to make leasehold ownership “fairer, cheaper and simpler” — but what does that really mean if you’re a landlord in Leeds?

Given how many apartments in Leeds city centre are leasehold, and how many landlords hold them as investments, this legislation matters. If you own a flat in places like Leeds Dock, Clarence Dock or the city centre, it could affect the value of your investment, your costs, and even your future plans to sell.

In this article, we’ll break down what the Act says, what’s already in force, what’s still to come, and what it all means for landlords in Leeds.

What Is the Leasehold and Freehold Reform Act 2024?

The Act was passed in summer 2024 after years of debate around leasehold practices. It’s aimed at tackling long-standing complaints from leaseholders about unfair costs, complicated lease extension processes, and the power imbalance between leaseholders and freeholders.

For landlords, the key issues are:
- Extending leases (many Leeds flats are on 99 or 125-year leases that tick down each year).
- Buying the freehold of flats (known as enfranchisement).
- Service charges and ground rents, which affect both landlords and their tenants.

Key Changes Landlords Should Know

Here are the most relevant reforms for Leeds landlords:

- Lease extensions: Leaseholders will be able to extend leases up to 990 years (rather than just 90 years).
- Ground rents: Ground rents are set to be capped at a peppercorn (essentially zero) when extending or buying the freehold.
- Marriage value scrapped: Previously, when a lease dropped below 80 years, leaseholders had to pay “marriage value” — often a hefty extra premium. The Act abolishes this.
- Service charges: Landlords and managing agents will face greater scrutiny and transparency requirements.
- Mixed-use thresholds: More buildings (like those with shops below and flats above) will qualify for collective enfranchisement and Right to Manage.

What’s Already in Force (2025)

Not all parts of the Act are live yet, but some changes have already kicked in:

- From 31 January 2025, new leaseholders no longer need to wait two years before applying for a lease extension or to buy the freehold.
- From 3 March 2025, the threshold for mixed-use buildings qualifying for Right to Manage was raised, so more blocks in Leeds city centre now qualify. Leaseholders are also no longer automatically liable for the freeholder’s legal costs when making a Right to Manage claim.

What’s Still Pending

Many of the most talked-about reforms — especially those that cut the cost of extending leases — are not yet in force. That includes:

- The full rollout of 990-year extensions.
- The abolition of marriage value in practice.
- New rules on valuation formulas (government still has to consult on the rates used).
- Wider service charge transparency requirements.
- Simplified rules for collective enfranchisement.

On top of this, parts of the Act are facing legal challenges from freeholder groups, particularly around marriage value. Court decisions expected later in 2025 will shape how quickly the government can bring these changes in.

What This Means for Leeds Landlords

If you own leasehold flats in Leeds, here’s what you need to consider:

- Short leases may become easier (and cheaper) to extend in the coming years — but not yet.
- Ground rent income will fall away when leases are extended or freeholds are purchased.
- Flat values could rise in the long term, because leasehold ownership becomes less of a headache for buyers.
- Service charge management will be under the spotlight — expect more questions from tenants and leaseholders.

In practical terms: landlords in Leeds with flats under 90 years left should be paying close attention. Extending may be cheaper under the new regime — but as the rules aren’t live yet, you’ll need to weigh whether to act now or wait.

Risks and Opportunities

Risks:
- Ground rent income streams drying up.
- Increased admin and possible disputes over service charges.
- Legal uncertainty until court challenges are resolved.

Opportunities:
- Lease extensions that would have cost tens of thousands under the old rules may soon cost far less.
- Flats with previously “short” leases may become easier to sell or refinance.
- Investors may find leasehold flats more attractive again, boosting demand in Leeds city centre blocks.

What Landlords Should Do Now

- Review your portfolio — identify leasehold flats and note lease lengths.
- Seek advice before rushing into a lease extension; timing could save (or cost) you money.
- Stay alert for government announcements in late 2025/2026 when more reforms are expected to come into force.
- Keep service charge records transparent and well-documented — scrutiny is only going to increase.

How Dwell Can Help

Leasehold can be complex, especially when you’re trying to balance compliance, tenants, and investment goals. At Dwell, we work with landlords who own leasehold flats across the city — helping them stay compliant, manage costs, and maximise returns.

👉 If you’d like tailored advice on letting or selling a leasehold property in Leeds, get in touch today.

FAQs

Can landlords still charge ground rent after the reforms?

Not when a lease is extended or the freehold is bought — ground rent will be capped at a peppercorn.

How long can I now extend a lease?

Up to 990 years once the relevant provisions come into force (not yet in 2025).

Will my flat be worth more after the reforms?

Whilst we will need to wait to see what effect the reforms has on value, it is very likely that leasehold flats may become easier to sell and more attractive to buyers.

What does this mean if I own the freehold of a block?

You may see a loss of income from ground rents and more leaseholders exercising their rights.

Should I extend my lease now or wait?

It depends. Some landlords are holding off in hopes of lower costs once the Act is fully in force, but others are acting now to avoid uncertainty. Professional advice is key.
The Leasehold and Freehold Reform Act 2024 is set to reshape how leasehold works in Leeds and across England. While not everything is live yet, the direction of travel is clear: cheaper, fairer, and simpler for leaseholders.

For landlords, this brings both challenges and opportunities. By staying informed — and working with an experienced agent — you can position yourself to benefit when the changes fully land.

📞 Contact Dwell today for landlord advice on managing leasehold properties in Leeds.