Leaseholders Patiently Wait for LAFRA as More Leasehold Scandals Are Revealed

29 November 2025

A recent BBC investigation has once again thrust the leasehold system into the spotlight, revealing how many flat-owners are being hit with soaring and often unexplained service charges.
Source: BBC News – https://www.bbc.co.uk/news/articles/cpq1xzd4xreo

For the millions of people living in leasehold flats across England and Wales, these stories are nothing new. Year after year, leaseholders find themselves grappling with steep bills, opaque management practices and a sense that the system is stacked firmly against them.

And while the Leasehold and Freehold Reform Act 2024 (LAFRA 2024) promises sweeping changes, many homeowners are still waiting for the reforms to take effect. In the meantime, more scandals and examples of poor practice continue to surface - leaving leaseholders impatient, frustrated and financially exposed.

A System Under Strain: Rising Costs and Opaque Charges

The BBC article highlights cases where service charges have spiralled dramatically, with some leaseholders reporting hikes that far outpace inflation or bear little resemblance to the actual condition of their buildings.

Service charges were originally meant to cover routine items like cleaning, grounds maintenance and communal repairs. Yet for many modern flat-owners, bills now arrive loaded with additional costs, questionable expenses or contributions to major works that feel disproportionately high.

Common complaints include:

• Sudden service-charge increases with no meaningful explanation

• Major works bills of tens of thousands of pounds

• Non-competitive contracts awarded to managing agents’ preferred contractors

• High management fees stacked on top of already rising maintenance costs

For leaseholders, particularly those trying to sell their flats, these unpredictable charges can be a serious barrier. Buyers are understandably wary of unknown liabilities, making the market more challenging than ever for sellers.

Why Many Leaseholders Feel the System Is Unfair

The leasehold system has long been criticised for its built-in power imbalance. While leaseholders pay for the building’s upkeep, they rarely have much control over how that money is spent. The BBC’s latest reporting adds yet more evidence of what many already feel: the system is outdated and too easily open to abuse.

1. Lack of transparency

Bills often provide little detail. Leaseholders are left guessing how costs were determined, whether they were competitively sourced and whether the work was genuinely necessary.

2. Power imbalance between freeholder and leaseholder

Freeholders and managing agents decide:

• What work is done

• What it costs

• Who carries it out

Leaseholders simply pay - with limited ability to influence decisions.

3. Weak routes for challenging unfair charges

While disputes can be taken to the First-tier Tribunal, the process is slow, complicated and expensive. Many homeowners feel they have no realistic route to justice.

4. Impact on property values

Rising costs and uncertainty make flats harder to sell. Buyers increasingly scrutinise service-charge histories and upcoming works before committing to a purchase.

LAFRA 2024: A Long-Awaited Reform - But Not Yet Fully Implemented

The Leasehold and Freehold Reform Act 2024 is intended to tackle many of the problems highlighted in the BBC’s reporting. It represents the biggest shake-up of leasehold law in decades and is designed to rebalance the relationship between freeholders and leaseholders.

Key reforms include:

1. Standardised, itemised service-charge demands

LAFRA introduces a mandatory, transparent format for service-charge bills, giving homeowners clarity over what they’re paying for.

2. Stronger rights to challenge unreasonable charges

Leaseholders will have more robust legal protection when disputing:

• Excessive service charges

• Overpriced insurance

• Unnecessary or inflated administration fees

3. Abolishing “marriage value”

Lease extensions below 80 years will no longer attract the expensive “marriage value” premium, making extensions significantly cheaper.

4. Easier leasehold enfranchisement and right-to-manage applications

Leaseholders will find it easier to take over the management of their building or collectively buy the freehold, reducing reliance on expensive managing agents.

5. 990-year lease extensions at a peppercorn rent

This eliminates the fear of constantly diminishing lease length and should improve long-term property values.

But Leaseholders Are Still Waiting

Despite the promise of reform, many parts of LAFRA 2024 require secondary legislation before they can be enforced. Consultations are underway, but key provisions are not yet active.
This delay means leaseholders continue facing high charges, opaque billing and limited control over their homes.

In the meantime, more scandals and stories of poor practice continue to emerge, reinforcing the urgency for change.

What This Means for Anyone Trying to Sell a Flat Today

While LAFRA offers hope, the current market remains challenging for leasehold sellers:

• Buyers want transparency. Clear service-charge accounts and evidence of responsible management are essential.

• Short leases still put buyers off, but once LAFRA is implemented, extensions should become more affordable.

• High or unpredictable charges continue to be major red flags for potential buyers.

Until the reforms take full effect, sellers must work harder to reassure buyers and demonstrate that their flat represents a manageable long-term commitment.

A System in Transition

Leaseholders across the country are waiting for LAFRA’s reforms to finally be implemented - and each new leasehold scandal only strengthens the case for rapid change.

While the system remains flawed, LAFRA 2024 offers a pathway toward transparency, fairness and a more balanced relationship between leaseholders and freeholders.

As the reforms come into force, leaseholders - and anyone trying to sell a leasehold flat - should see a more predictable, stable and fair environment emerge.