Housing Minister Matthew Pennycook has this week signed regulations implementing the first part of the Leasehold and Freehold Reform Act 2024.

Writing on X (formerly Twitter), the Labour MP said:” “I have today [22 January] signed regulations to remove the two-year ownership rule for leaseholders of flats to extend their lease, and leaseholders of houses to extend their lease or buy their freehold.

“The change will come into force at the end of this month, giving leaseholders the flexibility to make a claim immediately upon buying a leasehold property, and reducing their costs as a result.”

Commenting on the announcement, Linz Darlington, MD of Lease Extension Specialists Homehold, said the move was a “drop in the ocean”.

“While this is a welcome development, removing the ownership condition is a drop in the ocean in terms of what is needed from leasehold reform. It is a small change which will benefit a small proportion of leaseholders,” she said.

“We estimate that hundreds of thousands of leaseholders are waiting for the more significant changes to the lease extension regime which have been promised to make it ‘cheaper and easier’ for them to extend their leases.

“The Leasehold and Freehold Reform Act 2024 has already set out these changes but they are not yet in force. Despite this legislation receiving Royal Assent in May 2024 – now eight months ago – the government intends to run a further consultation on some of the important provisions. They don’t intend to run this consultation until the summer, and this creates a further delay which is unwarranted and unwelcome.

“For leaseholders waiting for leasehold reform, they have now had successive governments promise reforms which always seem tantalisingly close, but never actually seem to arrive.

“We need the Labour government to bring forward the consultation, and commit to swiftly implementing the legislation.”