Category: Uncategorized

Andy Burnham PM – Leasehold reforms to be brought in this parliamentary session.

Andy Burnham has said he is planning to reform the leasehold system in this parliamentary session.

Answering questions in the chamber, the PM says he wishes to fix the “unfair system” – and lays out a timetable for changes.

He says: “I’m looking at every facet of the cost-of-living crisis and where people face unfair charges that they can’t avoid, and this area of leasehold is absolutely in that territory.

“It is my intention, the intention of the government, to bring forward that Commonhold and Leasehold Bill, so that finally we can reform this unfair system, and we will do that in this session.”

This parliamentary session began shortly before the summer recess in May, and was kicked off by Sir Keir Starmer after the local and devolved elections.

Each session typically lasts for around a year, although Labour’s first one since the general election lasted for about 22 months.

There are several sessions within each parliament (the period between general elections).

Source – Sky News 

Service Charge Index 2026

The Property Institute have released their service charge index for 2026 HERE.

The average service charge per leaseholder ranges from £1,525 in the lowest tenth percentile to £8,680 in the highest.

For buildings under 11m in height, the average service charge is £2,418.

Leaseholders, landlords and managing agents will certainly wish to read the full report for perspective.

Renters’ Rights Act 2025 – Request for a Pet

Government have issued advice regarding how to respond to a tenant requesting to keep a pet at the rented property.

The full advice is available HERE

The advice includes examples as to when refusing a pet may be reasonable, a summary is provided below:

When you can refuse a request for a pet

It may be reasonable to refuse a request in some circumstances, such as:

  • another tenant has an allergy
  • the property is too small for a large pet or several pets
  • the pet is illegal to own
  • if you’re a leaseholder, and your freeholder does not allow pets
It will not usually be reasonable to refuse if you:
  • do not like pets
  • have had issues with tenants who had pets in the past
  • have had previous tenants with pets who damaged the property
  • have general concerns about potential damage in the future
  • think a pet might affect future rentals
  • know the tenant needs an assistance animal, such as a guide dog

 

In instances where the superior landlord (such as a management company) or freeholder decide that pets are not permitted, the leaseholder may use this as a reasonable reason as to why a pet request may be denied.

Anyone with responsibilities as a management company or freehold with obligations to consider granting permission for pets, should consult with the terms of the leases to determine which pets (if any) would be permittable and still comply with lease terms which (for example) permit other leaseholders quiet enjoyment and restrict nuisance of other properties.

 

Renters Rights Bill

The Renters Rights Bill has been agreed by both Houses and is now awaiting Royal Assent.

“Today is a momentous day, because, subject to agreement from this House, the Renters’ Rights Bill will have completed all its stages and will therefore shortly become law. – Matthew Pennycook – Minister of State for Housing and Planning.”

The Government are expected to announce plans for implementation shortly, with the expectation that these will commence in 2026. These include:

For tenants
Abolition of “no-fault” evictions: Section 21 notices will be abolished, so landlords can no longer evict tenants without a reason.

Shift to periodic tenancies: Fixed-term tenancies will be replaced by open-ended periodic (rolling) tenancies.

Protection against discrimination: Landlords will be legally prohibited from imposing blanket bans on renting to tenants who are receiving benefits or have children.

Right to request pets: Tenants will have a statutory right to request a pet, which a landlord cannot unreasonably refuse. Landlords can require tenants to have insurance to cover potential pet damage.

Ban on rental bidding wars: Landlords and agents will be banned from encouraging or accepting rental offers above the advertised price.

Landlord Ombudsman: A new Private Rented Sector Landlord Ombudsman will be introduced to provide a fair, impartial resolution service for disputes.

For landlords
New eviction process: Section 21 to be abolished. Landlords must use an expanded and strengthened set of Section 8 grounds to evict a tenant under specific reasons.

Legitimate grounds for possession: New mandatory grounds for possession will allow landlords to end a tenancy if they want to sell the property or move into it themselves. These grounds cannot be used within the first 12 months of the tenancy.

Private Rented Sector Database: A new digital database will require all landlords to register their properties, increasing accountability and enforcement by local councils.

Housing Standard: Housing standards such as those in “Awaab’s Law” will be extended to the private rented sector, requiring properties to meet minimum safety and quality standards.

Part 4 – Leasehold and Freehold Reform Act 2024

The Government has launched a 12-week consultation with proposals to implement Part 4 of the Leasehold and Freehold Reform Act 2024.

Part 1 of the Act has been implemented, with Parts 2 and 3 being partially implemented pending secondary legislation and further consultation.

Part 4 includes:
– Standardising Service Charge Documentation and Admin Charges
– Requiring Annual Reports for Buildings
– Ensuring Provision of Insurance Information (to supplement FCA Rules)
– Reforming the Major Works (Section 20) Process
– Re-balancing Legal Cost Rules
– Ensuring Reserve Funds and Protecting Leaseholder Funds
– Requiring Mandatory Professional Qualifications for Managing Agents
– Implementing Stronger Protections for Fixed Charges & Estate Rentcharges

We would strongly advise those in the sector to read the consultation and provide relevant feedback.

The consultation may be found at:
https://lnkd.in/eGk8jjPD

Leasehold and Freehold Reform – 2 Year Lease Extension Rule

From 31st January 2025, owners of leasehold homes will no longer be required to wait for two years before being able to extend their lease.

This change being one of the first of many proposed legislative reforms being introduced via the Leasehold and Freehold Reform Act 2024 (“LFRA”), intended to give leaseholders better control over their investments and homes.

The Impact Assessment for the LFRA assumes “that the majority of the reforms will commence in 2025/26. However, our redress reform may not be operational until 2028, due to the need to implement the necessary secondary legislation”.

We welcome sensible and proportionate legislative progress and look forward to continuing to adapt and support these changes as they come into force.