Leasehold Right to Manage Reforms Effective from March 2025

Leasehold Right to Manage Reforms Effective from 3 March 2025

The Leasehold and Freehold Reform Act 2024 (Commencement No. 3) Regulations 2025 represent a major step forward in strengthening leaseholders’ rights by giving them greater control and protections. These changes will have a direct impact on estate and letting agents across the UK, influencing the management, purchase, and sale of leasehold properties.

What is the Right to Manage?

The Right to Manage (RTM) enables a group of leaseholders to take collective control of their development’s management. This right was established under the Leasehold and Commonhold Reform Act of 2002.

If you and at least 50% of your fellow leaseholders are dissatisfied with the current management, you have the legal right to exercise RTM. This process allows you to transfer management responsibilities to an RTM company, regardless of whether the existing management has been negligent or not.

Understanding the Impact on Property Professionals

For those working in the property industry, it’s essential to be aware of how these new regulations may affect daily operations. Legacy Block Management is available to provide guidance and support as the sector adapts to these changes.

Key Reforms and Their Effects

These regulations build upon the Leasehold and Freehold Reform Act 2024, which is designed to create a fairer and more transparent leasehold system.

The following provisions will take effect from 3 March 2025:

Section 49 – Increases the non-residential limit for right-to-manage claims.
Section 50 – Addresses costs associated with right-to-manage claims.
Section 51 – Ensures compliance with obligations under the Commonhold and Leasehold Reform Act 2002.
Section 52 – Prohibits first-instance applications to the High Court in tribunal matters.
Section 64 – Restricts the recovery of non-litigation costs, particularly in relation to the right to manage.

A significant change is the increase in the non-residential limit for right-to-manage claims from 25% to 50%. This adjustment will give more leaseholders the ability to exercise collective enfranchisement and the Right to Manage while also limiting the costs they can be held responsible for.

These reforms mark a crucial shift in leasehold property management, enhancing fairness and accessibility for leaseholders across the UK.

Legacy Block Management provides expert assistance with Right to Manage applications.
We manage residential developments across England and are here to help.

Speak with one of our specialists today:
📞 0330 010 4717
📧 [email protected]