Welsh Government publishes written statement on LFRA 2024 phased implementation
The Welsh Government has published a written statement, outlining the phased implementation of the Leasehold and Freehold Reform Act 2024 (LFRA 2024). Key provisions concerning the right to manage (RTM) came into force on 3 March 2025. These include section 49 of the LFRA 2024, which expands the criteria for buildings to qualify for RTM by increasing the non-residential space limit from 25% to 50%. LFRA 2024, ss 50 and 64, remove the requirement for RTM companies to cover other parties' costs when exercising RTM, except in cases determined by a tribunal. LFRA 2024, ss 51 and 52, shift the jurisdiction for leasehold cases from the courts to the Leasehold Valuation Tribunal in Wales. The increase in the non-residential limit necessitated updates to RTM company model articles, resulting in the enactment of the RTM Companies (Model Articles) (Wales) (Amendment) Regulations 2025, SI 2025/126, which also came into force on 3 March 2025, ensuring that leaseholders retain majority voting rights in RTM company decisions following the commencement of LFRA 2024 s 49. The Welsh Cabinet Secretary for Housing and Local Government, Jayne Bryant MS, stated that further consultation is needed to develop the necessary subordinate legislation before other parts of LFRA 2024 can be enacted.