The UK property market never stands still, and the Leasehold and Freehold Reform Act 2024 is one of the biggest shake ups for landlords and tenants in recent years. For those invested in Leeds, West Yorkshire and beyond, this reform changes how leaseholds and freeholds work, what rights tenants and leaseholders have, and how property management companies like KeyStep Properties can play a vital role in navigating these shifts. As an editor of a property magazine and long term investor myself, I have seen many reforms come and go, but this one is particularly significant because of its scale and its potential to rebalance relationships between freeholders, leaseholders and tenants.
What Is the Leasehold and Freehold Reform Act 2024?
The Act received Royal Assent in May 2024 and was introduced to address long standing criticisms of the leasehold system. Many homeowners and campaigners argued that leaseholds were outdated and unfair, with escalating ground rents, expensive lease extensions and opaque service charges. The government’s intention was clear – to modernise housing law and offer more protection for leaseholders while ensuring transparency for all parties.
Some of the core provisions include:
- Abolishing marriage value for lease extensions, reducing costs for leaseholders.
- Extending the standard lease extension term to 990 years for both houses and flats.
- Making it easier and cheaper for leaseholders to buy their freehold.
- Enhancing transparency of service charges, requiring more detailed breakdowns.
- Restricting the ability of freeholders to add new ground rents.
For landlords in Leeds, especially those managing blocks of flats or mixed use developments, these changes may affect how income is generated, how charges are justified, and how future investments are valued.
Why This Matters to Leeds Landlords
Leeds has been one of the fastest growing property markets in the North of England. According to the UK House Price Index (gov.uk, July 2025 data), the average property price in Yorkshire and The Humber stands at £214,756, reflecting year on year growth of around 2.1 per cent. While house prices overall remain resilient, the way landlords structure investments is now directly influenced by legislation.
For landlords holding leasehold properties in Leeds city centre, areas like Headingley, Hyde Park, or new build flats around Holbeck and the South Bank regeneration zone, the new Act changes the playing field. Service charges, once a reliable way to recoup maintenance and management costs, now require clearer justification. Leaseholders are empowered to challenge unreasonable fees, meaning professional management becomes even more valuable.
At KeyStep Properties, we have always emphasised transparent management. These reforms make our approach even more relevant. By providing detailed service charge accounts, clear communication, and proactive maintenance, we help landlords avoid disputes and maintain good tenant relations.
How Tenants and Leaseholders Benefit
From a tenant’s perspective, the reforms are largely positive. Lower lease extension costs and the ability to extend to 990 years provide long term security. Greater transparency around service charges means tenants can see exactly what they are paying for. For tenants in Leeds, where student lets, young professionals and families rent across diverse areas, this provides reassurance and stability.
However, some landlords worry that reduced ground rent income and capped extension costs could limit their returns. While this may be true in the short term, in practice, properties with fairer leases are more attractive to buyers and renters. In other words, landlords who adapt will find their portfolios more appealing. KeyStep Properties helps clients position their investments accordingly, ensuring compliance while also marketing properties in ways that highlight tenant friendly features.
Practical Implications for Investors
Investors in Leeds need to look at three main areas affected by the Act:
- Valuation – With leaseholders no longer paying inflated marriage value when extending leases, some freehold portfolios may see reduced theoretical value. Yet, in reality, making properties more affordable to leaseholders can drive transaction volumes and long term gains.
- Cash Flow – Reduced ground rent opportunities mean landlords must focus on rental yields and efficiency of property management. Optimising occupancy and reducing void periods will matter more.
- Compliance – Transparency requirements around service charges create more admin. Investors working with experienced property managers like KeyStep Properties can delegate this responsibility and ensure they stay compliant.
Leeds Market Opportunities Post Reform
Rather than seeing these reforms as a burden, forward looking landlords can use them as a springboard. Leeds continues to attract students, young professionals, and corporate tenants. The city’s £500m South Bank development is one of the largest regeneration projects in Europe, creating thousands of jobs and boosting demand for quality housing. Properties that are managed well, with clear service charges and tenant friendly leases, will remain highly sought after.
Investors should also look to diversify. For example, Houses in Multiple Occupation (HMOs) remain strong in areas like Headingley and Hyde Park. While HMOs are not directly affected by the Act, landlords benefit from the overall tenant focus it brings. KeyStep Properties offers HMO management services that ensure compliance with licensing and safety rules, giving landlords peace of mind.
Challenges and How to Overcome Them
No reform comes without challenges. Some landlords may feel frustrated at losing certain revenue streams. Others may struggle with the new transparency requirements, especially if they have self managed in the past. But this is where professional management steps in.
At KeyStep Properties, we:
- Prepare and present clear service charge breakdowns for leaseholders.
- Ensure compliance with new regulations to avoid costly disputes.
- Advise on lease extension strategies to protect property values.
- Market properties to highlight long term tenant security, making them more attractive.
By handling the detail, we let landlords focus on the bigger picture – growing their portfolio.
The Bigger Picture for UK Property Investment
While Leeds is a clear hotspot, the Act has implications nationwide. The government has also signalled that it will keep reforming rental law, with the Renters’ Rights Bill also under discussion. For investors, the takeaway is that the regulatory environment will continue to evolve. Having a property management partner who keeps pace with legislation is essential.
In times of change, it is tempting to wait and see. But the reality is that landlords who act now – reviewing their leases, updating management practices, and ensuring compliance – will be ahead of the curve. KeyStep Properties is here to help at every stage, from portfolio review to day to day tenant management.
The Leasehold and Freehold Reform Act 2024 represents a shift towards fairness and transparency in the property market. For landlords and tenants in Leeds, it changes some of the mechanics of investment, but it also creates opportunities for those willing to adapt. By focusing on good management, clear communication and long term tenant satisfaction, landlords can continue to thrive.
At KeyStep Properties, we believe in turning regulatory change into competitive advantage. If you are a landlord or investor in Leeds and want to understand how the reforms affect your properties, now is the perfect time to get in touch with us. We can guide you through the detail, safeguard your investments and ensure your portfolio remains profitable in 2025 and beyond.