Right To Manage

The Upper Tribunal (Lands Chamber) has provided clarification on the meaning of a “self-contained building” for the purposes of the right to manage (“RTM”) under the Commonhold and Leasehold Reform Act 2002 (“CLRA 2002”).

The decision is particularly significant in light of that expansion of the RTM regime. Since 3 March 2025, leaseholders in mixed-use buildings have been able to exercise the right to manage where the non-residential element comprises up to 50% of the building’s internal floor area, compared with the previous 25% threshold.

Law Commission recommendations to reform the Right to Manage

The Right to Manage (RTM) was introduced in 2002 giving flat owners the ability collectively TO take over the management functions in respect of their building without having to prove fault on the part of those responsible for management under their lease (usually their landlord) or paying a premium.

Strengthening Leaseholder Protections over Charges and Services – Consultation Summary

The Government has published an open consultation titled “Strengthening Leaseholder Protections over Charges and Services,” which runs until 26 September 2025. This consultation accompanies the implementation of the Leasehold and Freehold Reform Act 2024 and is part of the wider legislative programme designed to rebalance the leasehold system in favour of flat owners and occupiers.

The consultation targets the next phase of reforms: improving transparency around service charges, regulating managing agents, and reforming major works and reserve funds.

While all of these reforms seem to favour leaseholders, ultimately life may become more expensive, and some flats may be more difficult to sell as a result.