Pennycook removes two-year ownership rule for leaseholders

News23.01.2511.00 AM by Grainne Cuffe

Housing minister Matthew Pennycook has signed regulations to remove the two-year ownership rule for leaseholders.

Matthew Pennycook announced the news on X (picture: Richard Townshend)

Sharelines

Pennycook removes two-year ownership rule for leaseholders #UKhousing

Housing minister Matthew Pennycook has signed regulations to remove the two-year ownership rule for leaseholders #UKhousing

This means that leaseholders can now extend their lease or buy their freehold immediately upon purchasing a leasehold property, instead of waiting two years.

Posting on X, Mr Pennycook said: “The work continues to switch on the measures in the Leasehold and Freehold Reform Act.

“I have today 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.”

In a statement responding to the announcement, the National Leasehold Campaign (NLC) said: “Today’s news is a significant step forward and follows the ministerial leasehold statement in November, where the government reaffirmed their determination to honour Labour’s manifesto commitments to finally bring the feudal leasehold system to an end.

“This is the first action to be delivered.”

However, the campaign group said that while it welcomes the action, “there is still a long way to go to deliver the promises leaseholders desperately need and deserve”.

NLC added: “Without the valuation section of the Leasehold and Freehold Reform Act 2024 being switched on, many leaseholders remain in a state of ‘leasehold limbo’.

“They still won’t be able to afford the over-inflated premiums and legal fees to buy their freehold or extend their lease.

“We urge the government to expedite the valuation part of the act so that leaseholders can enfranchise or extend their lease quicker, easier and cheaper.

“This is what millions of leaseholders and the 30,000 members in the NLC are waiting for.

“Time is running out, as in the meantime leaseholders remain at the mercy of freeholder investors who continue to fleece tenants through extortionate charges trapping them in a system they cannot afford to get out of.”

The Leasehold and Freehold Reform Act was given Royal Assent in May 2024. However, most of the provisions will not come into force until secondary legislation is passed to bring it into effect.

Deputy prime minister and housing secretary Angela Rayner said earlier this month the aim is to introduce the legislation this year.