The Leasehold and Freehold Reform Act became law on 24 May 2024. Further secondary legislation required to facilitate the Act will be introduced after the general election and will be determined according to the priorities of the next government.
RICS published this response to the new Act on 29 May 2024.
Information for leaseholders
Leasehold reform valuation is a specialist matter, for which RICS recommends taking the professional advice of an RICS regulated member specialist in this field as well as appropriate legal advice from a specialist solicitor.
Ongoing reform can mean that there may be particular challenges with extending a lease or undertaking a collective enfranchisement at this time.
In addition to RICS, there are other public interest bodies who can support leaseholders, such as the following:
Information for professionals
Valuers are reminded that they need to be aware of the latest market and legal position prior to undertaking work related to this area.
RICS are currently reviewing leasehold reform valuation guidance for members. The 2015 guidance has now been withdrawn. An archived copy of the guidance is available for information only by request from Knowledge and Information Services.
Valuation undertaken by RICS members must continue to be undertaken in accordance with Red Book Global Standards, noting that some elements of leasehold reform valuation such as ‘Providing valuation advice expressly in preparation for, or during the course of, negotiations or litigation’ (PS1 section 5), are excepted from mandatory technical standards.
Leasehold reform valuations are specialist in nature and valuers must be appropriately qualified and competent.
RICS continues to engage with government, industry and valuation professionals on leasehold reform matters and has made a number of statements, including the following: