Earlier this month, Matthew Pennycook, MP for Greenwich and Woolwich and Minister of State for Housing and Planning, signed new regulations to remove the two-year ownership rule for leaseholders of flats and houses to extend their lease or buy their freehold.
These regulations come into effect on the 31 January 2025. This means leaseholders can now extend their lease (or buy the freehold of a house) immediately upon purchasing a leasehold property, instead of having to wait two years.
This change in regulation is part of the bigger project of implementing the Leasehold and Freehold Reform Act. Posting on X, Mr Pennycook said: “The work continues to switch on the measures in the Leasehold and Freehold Reform Act.”
The Leasehold and Freehold Reform Act 2024 will take time for all aspects to be put into force as many parts need regulations drafted or further consultation. However, the removal of the two-year rule is very much seen as a positive step forward and an affirmation of the Government’s determination to honour their commitment to bring the leasehold system to an end.
This commitment was confirmed by Housing Secretary, Angela Rayner who said when questioned by the housing communities and local government committee; “we want to do that within this year – bring forward the legislation”.
