Right to Manage Companies
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether she plans to (a) lower the threshold for right to manage applications and (b) increase the maximum proportion of commercial property permissible for right to manage applications to occur.
Answered by Matthew Pennycook
The government has commenced the Right to Manage measures in the Leasehold and Freehold Reform Act 2024. They came into effect on 3 March 2025.
These changes implement the Law Commission recommendation to increase the non-residential floorspace limit from 25 to 50 per cent for Right to Manage claims. This means that more leaseholders in mixed-use buildings will qualify for the right to manage, gaining control over the management of their building. Further changes mean that leaseholders making right to manage claims will no longer have to pay their freeholder’s process costs for that claim.
Over the course of this Parliament, the government will enact remaining Law Commission recommendations relating to the Right to Manage. We do not plan to lower the participation requirement or further increase the non-residential limit for the Right to Manage at this time but will continue to evaluate how the Right to Manage operates following the recent changes.
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