Leasehold and Freehold Reform Act 2024: Government launches consultation to switch on provisions relating to estate management charges

On 18 December 2025, the Government published a consultation entitled: Enhanced protections for homeowners on freehold estates, proposing to implement Part 5 of the Leasehold and Freehold Reform Act 2024 (“LAFRA 2024”) relating to estate management charges payable by freehold owners of properties on estates in England.  The consultation will close on 12 March 2026. At present, freehold owners have no statutory rights to challenge the reasonableness of estate management charges. However, provisions in LAFRA 2024 will give freehold owners on estates similar rights to challenge estate management charges as those which currently exist for leaseholders of residential flats to challenge the reasonableness of service charges for items such as insurance and repairs.

If Part 5 of LAFRA 2024 is fully implemented, freehold owners on estates will have the following statutory rights:

• Ability to challenge the reasonableness of estate management charges and administration charges in the FTT;
• Ability to challenge estate management charges which are not demanded within 18 months of being incurred unless a future demand for payment notice has been served;
• Right to receive information in a standard form with the Government intending to introduce a standard estate management charge demand form and annual report (in the same way as it intends to do for service charges payable in respect of residential flats);
• Ability to request information from estate managers with a right to receive that information within a certain period of time;
• Right to be consulted in relation to major works concerning estate facilities where the costs exceed £600 per homeowner; and
• Right to appoint a replacement estate manager if statutory grounds concerning serious management failures can be established.

On the same date, the Government published a second consultation entitled: Reducing the prevalence of private estate management arrangements. This will also close on 12 March 2026 and seeks views on dealing with unadopted amenities on private managed estates in England.  Estates may be set up with amenities such as roads, green spaces, communal gardens, drainage systems which are maintained by an estate management company upon payment of an estate management charge.  These areas are not managed by local authorities. The Government wants to explore whether more of these amenities can and should be adopted by local authorities.

Both of these consultations follow the Government’s consultation on implementing the provisions of Part 4 of LAFRA 2024 on service charge regulation for residential properties which ran from July to September last year. For more on that consultation see our Quick Read: Government launches consultation on “switching on” provisions regulating service charges and estate management charges in the Leasehold and Freehold Reform Act 2024. The Government says it is analysing the feedback from that consultation and the Government’s response is awaited. In addition, Matthew Pennycook, in response to a direct question in the House of Commons about the steps being taken to implement LAFRA 2024 on 12 January 2026, stated that the Government intends to commence more parts of LAFRA 2024 this year. In particular, he confirmed that the Government is reviewing the “very technical” and “lengthy” service charge consultation and “will introduce the necessary secondary legislation this year”.

In the meantime, a number of landlords unsuccessfully brought judicial review proceedings against the Government in relation to aspects of the enfranchisement provisions in LAFRA 2024 during 2025. It is understood that several (but not all of the original landlords to those proceedings) have appealed. However, the Government, again suggested on 12 January 2026, in response to a question about implementation of LAFRA that it is working behind the scenes on these aspects and intends to consult on valuation rates and “rectify... the small number of serious flaws” in LAFRA 2024.

Stakeholders in the residential sector may wish to respond to the estate management charges consultations.  They will also, no doubt, be awaiting further news from the Government as to its plans for implementation of LAFRA 2024 generally in order that they can take appropriate steps to prepare for those aspects which are relevant to them and their portfolios. Further, Florence Eshalomi, Chair of the Housing, Communities and Local Government Committee indicated, just before Christmas 2025, that the draft Leasehold and Commonhold Reform Bill is due to be published during the early part of 2026. This is hugely significant piece of legislation under which the Government aims to make commonhold the predominant form of home ownership in England. So, further developments are expected imminently. 

We are tracking the changing residential landscape on our Essential Residential hub. Please contact Lauren Fraser, Laura Bushaway or your usual Charles Russell Speechlys contact if you have any queries.