ARTICLE
1 November 2024

New Leasehold And Freehold Reform Act Regulations Amend Part 5 Of The Building Safety Act 2022

D
Devonshires

Contributor

Based in the City of London for over 150 years, Devonshires is a leading practice providing high-quality, accessible and value-for-money services to domestic and international clients, including developers, local authorities, housing associations and financial services firms. The practice focuses on building strong, long-lasting relationships in order to achieve outstanding results based on practical advice. The foundation of its success is its commitment to people, both its own and those working for its clients. The firm ensures its staff have access to high-quality training and fosters ‘one to one’ connections between its solicitors and clients.

The firm acts on a broad range of matters including projects, property and real estate, securitisation, construction, housing management, commercial litigation, employment, banking, corporate work, and governance. The practice is a leader in social housing, including working on many development projects nationwide and helping to draft legislation.

The Leasehold and Freehold Reform Act 2024 enacts amendments to the Building Safety Act, expanding tribunals' powers and cost coverage for building defect remediation, effective 31 October 2024.
United Kingdom Real Estate and Construction

On 7 October 2024, the Government made the Leasehold and Freehold Reform Act 2024 (Commencement No 1) Regulations 2024 (SI 2024/1018) ('the Regulations'). The Regulations bring certain sections of the Leasehold and Freehold Reform Act 2024 ('LAFRA 2024') into force.

On 31 October 2024, the following provisions of LAFRA 2024 will come into force:

  • Section 114 of LAFRA 2024 amends section 120 of the Building Safety Act 2022 ('BSA 2022') by adding a definition of "relevant steps" in relation to remediating "relevant defects". The amendment means that the cost of taking relevant steps can be included within a remediation contribution order;
  • Section 115 of LAFRA 2024 amends section 123 of the BSA 2022 to allow the First-tier Tribunal ('FTT') to order the production of an expert report and to provide that a landlord may be required to take steps to mitigate a defect (in addition to remediating the defect) under a remediation order;
  • Section 116 of LAFRA 2024 adds a new subsection (2A) to section 124 of the BSA 2022. This new subsection extends the costs that can be subject to a remediation contribution order to include costs in taking "relevant steps", obtaining expert reports and temporary accommodation costs;
  • Section 120 of LAFRA 2024 relates to the interpretation of references to other Acts.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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