The English Devolution and Community Empowerment Bill, which had its first reading in the House of Commons on 10 July 2025, contains an unexpected ban on upward-only rent review clauses in new commercial leases. The Government has stated that the policy behind this ban is supporting smaller businesses who are struggling to keep up with open market rent reviews that only allow rent to rise, not fall.

The measure has generated concern among landlords and investors, particularly given the surprising lack of prior consultation on such a major reform in a sector that has historically operated with minimal statutory intervention. For now, the Bill remains in its early parliamentary stages and is highly susceptible to changes following lobbying, with its Second Reading due in September.

This article sets out the scope of the proposed ban and its implications for the commercial rental sector if passed as it currently stands.

Following its Third Reading in the House of Lords on 21 July 2025, only minor drafting amendments were made to the Renters (Reform) Bill (‘the Bill’), signalling the Lords’ broad approval of its substance.

If the Bill is given Royal Assent in its current form — with no last-minute policy reversals when it returns to the Commons on 8 September 2025 — it will mark the most significant overhaul of tenancy law since the Housing Act 1988.

This article outlines the key reforms envisaged by the Bill to help landlords, tenants, and investors prepare for the changes ahead.

As part of the Leasehold and Freehold Reform Act 2024, the government has proposed introducing new regulations to define what landlords and managing agents can charge leaseholders in connection with arranging building insurance.

A consultation was launched in December 2024 to seek views on what should constitute a “permitted insurance fee.” The government’s formal response was published on 11 July 2025.

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.

The Government has now brought into force a number of provisions under the Leasehold and Freehold Reform Act 2024, implementing parts of the Law Commission’s recommendations relating to the Right to Manage (RTM). These were commenced by the Leasehold and Freehold Reform Act 2024 (Commencement No. 3) Regulations 2025, which came into force on 3 March 2025.

While these reforms improve the existing RTM process in important ways, many of the more far-reaching recommendations remain outstanding and may be included in a future Leasehold and Commonhold Reform Bill. This raises the practical question for flat owners: should they proceed with an RTM claim now, or wait to see if further changes are made?

The property investment landscape has been facing increasing challenges in recent years, and the proposed Renters (Reform) Bill — currently progressing through Parliament — could represent a significant turning point for private landlords.

The Leasehold and Freehold Reform Act 2024

The Leasehold and Freehold Reform Act 2024 (LaFRA) represents a significant shift in property ownership laws in England and Wales, aiming to enhance the rights of residential leaseholders, this being flat and house owners.

While it received Royal Assent on 24^th May 2024 only a few provisions were brought into effect then, and it wasn’t until the end of January that the first change relating to enfranchisement rights came into effect. This was the removal of the requirement to have owned your flat or house for two years before you could claim an extended lease or the freehold to your house.

Now a number of provisions of the LaFRA relating to the Right to Manage (RTM) have been brought

The Government has recently provided updates on the phased implementation of the Leasehold and Freehold Reform Act 2024 (LaFRA), which represents a landmark shift in property law aimed at improving rights and protections for leaseholders. It has also enacted one of the many provisions.

We explore the latest developments and upcoming reforms following recent statements by the Housing Minister, as well as their implications for leaseholders and freeholders alike.

The King’s Speech on 17 July 2024 promised a number of changes to the current state of leasehold and rental law – some of which we have covered in previous articles. Here we will discuss the proposed changes to No-Fault Evictions under section 21 of the Housing Act 1988.

Currently, once the contractual term of an assured shorthold tenancy ends, landlords can evict tenants without providing any reason. They just need to serve a “Section 21” notice on their tenants, providing a minimum of 2 months’ notice and satisfy certain pre-conditions. If the tenant does not leave during the notice period, they can issue court proceedings to obtain possession. Proceedings for possession cannot be commenced less than six months after the s.21 notice is given (with exceptions).

The King’s Speech confirmed that the government will ban no fault evictions as part of the Renter’s Rights Bill. This is part of a plan to give greater rights and protection to people renting their homes.

The Bill is currently at the report stage in the House of Commons, having had its first and second readings and has now passed through the committee stage with some amendments.

The Leasehold and Freehold Reform Act 2024 received royal assent in the wash up just prior to the election.
 
It included some of the changes around the rights of leaseholders of flats and houses to obtain extended leases and the freehold that The Law Commission had recommended, i.e. providing for leases to be extended by 990 rather than 90 years, doing away with the need to have owned for two years to qualify for an extended lease and bringing more buildings within the right to enfranchise or manage by increasing the threshold of non-residential parts from 25% to 50%.