Leasehold And Commonhold Reform – Government Statement Confirms Timing and further reforms

The Leasehold and Freehold Reform Act 2024 received royal assent in the wash up just prior to the election.
 
It included some of the changes around the rights of leaseholders of flats and houses to obtain extended leases and the freehold that The Law Commission had recommended, i.e. providing for leases to be extended by 990 rather than 90 years, doing away with the need to have owned for two years to qualify for an extended lease and bringing more buildings within the right to enfranchise or manage by increasing the threshold of non-residential parts from 25% to 50%.

The End of Upward-Only Rent Reviews?

The English Devolution and Community Empowerment Bill, which had its first reading in the House of Commons on 10 July 2025, contains an unexpected ban on upward-only rent review clauses in new commercial leases. The Government has stated that the policy behind this ban is supporting smaller businesses who are struggling to keep up with open market rent reviews that only allow rent to rise, not fall.

The measure has generated concern among landlords and investors, particularly given the surprising lack of prior consultation on such a major reform in a sector that has historically operated with minimal statutory intervention. For now, the Bill remains in its early parliamentary stages and is highly susceptible to changes following lobbying, with its Second Reading due in September.

This article sets out the scope of the proposed ban and its implications for the commercial rental sector if passed as it currently stands.

Varying residential flat leases

Flat leases often contain defects which one party or the other would like to see changed. This can be a particular problem on resale as lenders continue to tighten their requirements over time.

Such a change would usually be documented by varying the lease via a Deed known as a “Variation”.

Recent case law developments have made lease variations easier in certain circumstances and serve as a useful reminder of the available routes for seeking a variation.