The Right to Manage (RTM) was introduced in 2002 giving flat owners the ability collectively TO take over the management functions in respect of their building without having to prove fault on the part of those responsible for management under their lease (usually their landlord) or paying a premium.
In this second article in our series of three we look at what it means for residential leaseholders and their landlords following the Government’s confirmation that it will enact the remaining Law Commission recommendations around enfranchisement rights (leaseholders rights to extend their lease or acquire the freehold to their house or block of flats).
The Law Commission’s recommendations are set out in its report “Leasehold Home Ownership: Buying Your Freehold or Extending Your Lease”. The stated intention of the recommendations was to “help make our homes our own rather than someone else’s asset. They are intended to make the law work better for leaseholders”. Their report was described as a root and branch review of enfranchisement rights.
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?
