Our April 2025 summary of the latest developments in Property law and practice is as follows:

The UK government is consulting on proposals to raise the minimum energy efficiency standards for privately rented homes in England and Wales by 2030. These proposals, initially outlined in 2020, follow a recent consultation on potential reforms to the regulatory framework governing the energy performance of buildings.

The new consultation, open until 2 May 2025, focuses on the Energy Efficiency (Private Rented Property) Regulations 2015, which govern energy standards in rented domestic properties. It is expected that a similar consultation for non-domestic rented properties will be launched in the near future.

As part of the reforms, the consultation suggests moving away from the current EPC system, which uses a single energy efficiency rating (banded scale), and instead adopting multiple metrics for a more comprehensive evaluation of a building’s energy performance. One key proposal is to introduce a new standard that measures ‘fabric performance’ – likely similar to the improvements required to meet the current EPC band C rating. Additionally, landlords will need to meet either a ‘heating system’ standard or a ‘smart readiness’ standard for their properties.

Under the proposed changes, new tenancies would need to comply with these updated standards by 2028. Both new and existing tenancies would be required to meet the new standards by 2030, although properties with an existing EPC rating of C or higher would be considered compliant until their EPC certificate expires.

These proposals aim to improve energy efficiency, reduce carbon emissions, and ensure that rented properties meet modern standards of comfort and sustainability.

Starting on 3 March 2025, new regulations have come into effect as part of the Leasehold and Freehold Reform Act 2024, specifically through the Leasehold and Freehold Reform Act 2024 (Commencement No.3) Regulations 2025 (SI 2025/131). These changes introduce key amendments to the rights of leaseholders in mixed-use buildings, particularly concerning the right to manage (RTM).

Under the current provisions of the Commonhold and Leasehold Reform Act 2002, the right to manage cannot be exercised if the internal floor area of any non-residential part of a building exceeds 25% of the total internal floor area. However, section 49 of the Leasehold and Freehold Reform Act 2024 increases this threshold to 50%, meaning that more mixed-use buildings will now be eligible for the RTM. This change allows leaseholders in a wider range of buildings, which include both residential and commercial spaces, to take control of the management of their property.

This amendment is part of broader changes to the management rights for leaseholders, and consequential adjustments have also been made to the model articles of association for Right to Manage (RTM) companies in both England and Wales. These amendments are outlined in the RTM Companies (Model Articles) (England) (Amendment) Regulations 2025 (SI 2025/130) and the RTM Companies (Model Articles) (Wales) (Amendment) Regulations 2025 (SI 2025/126 (W28)).

The new provisions expand the scope of leaseholder control in mixed-use properties, further empowering tenants and providing them with more influence over the management of their buildings.

While section 29 of the Leasehold and Freehold Reform Act 2024, which deals with enfranchisement claims, is not yet in force, the changes to the right to manage mark a significant step in the ongoing reform of leasehold law in the UK.