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4/9/2025 9:50:54 AM | 4 minute read

The BIG 100: The Law of Property Act 1925 at 100 - What comes next?

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Rowenna Husselbee
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Rowenna Husselbee
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As we celebrate the centenary of the Law of Property Act 1925 (the 1925 Act), we find ourselves at a crossroad. The 1925 Act’s legacy is indisputable, but the demands of the 21st century call for new approaches. In this, my final commentary (of this four-part series…not ever), we’ll explore the potential future of property law, drawing on lessons from the past, whilst addressing the challenges of the present (in the context of the 1925 Act of course – don’t worry, I’ve edited out most of the Virginia Woolf analogies which appeared in Article 1…)

The need for modernisation: What are the problems?

1. Slow process

The traditional conveyancing process is often slow and (despite the industry’s best efforts to be ‘green’) paper-intensive, leading to monumental delays in registration and increased costs.

Proposed reforms: 

  1. Technology integration & Artificial Intelligence (AI): AI and digital platforms such have been offered as a solution to revolutionise investment strategy, property due diligence and even title registration, promising to make transactions faster, cheaper and more transparent. 

    Those that have tried it (and for those who haven’t, what are you waiting for?!) agree that AI can expedite the generation of due diligence packs, bid summaries and portfolio data management, by quickly analysing vast amounts of data to identify common legal issues, themes or restrictions associated with a property. This is particularly revolutionary when it comes to large portfolio transactions (or, in this author’s experience, those deals where the instruction comes in at 6pm on a Thursday, with an agreed ‘CoB Friday’ completion deadline…). This can lead to more informed decision making within tight timeframes and could potentially reduce the risk of disputes later down the line. Perhaps more impressive (and quite frankly, super cool) is the use of virtual reality and augmented reality technologies which allow investors (and keen lawyers) to conduct virtual property tours, saving time and travel costs, all whilst providing a realistic view of potential investments.

    But of course, (and for the benefit of this author’s compliance team) the need to fact-check information will still be required and thereby not entirely allowing the robots to take over…
     
  2. Blockchain for Title Registration: Blockchain technology is said to offer a decentralised and tamper-proof method for recording property titles. Without analysing the accuracy of this claim (we’d need at least 10 more pages), the assertion is essentially that the use of a digital ledger of property ownership, can lead to transactions becoming more transparent and secure. Countries like Sweden have piloted blockchain for land registration, demonstrating its potential effectiveness (albeit despite being ever the optimist, this author is somewhat less confident that us Brits will take such a leap of faith anytime soon…).

2. Sustainability

The 1925 Act does not adequately (or at all, even) address environmental concerns apparent in today’s climate (no pun intended). Future reforms must address environmental considerations, incentivising green development and sustainable land use (although wouldn’t it be more revolutionary to make such matters mandatory, as opposed to simply incentivising…)

Proposed reforms:

  1. Green Building Standards: Introducing mandatory sustainability criteria for new developments can promote environmentally friendly construction. For example, following the introduction of the Future Homes and Buildings Standard (known as the FHS) the UK government has set targets to ensure that new homes built from 2025 will produce 75-80% less carbon emissions, than homes built under previous building regulations
  2. Environmental Covenants: Reforming property laws (not just the 1925 Act) to include provisions for environmental covenants can ensure that land is used sustainably (or it can at least try to govern such use). These legal agreements can bind current and future owners to maintain certain environmental standards (and yes, our planning laws go some way toward achieving this, but by devolving power to individual planning authorities to ‘pick and choose’ which of these environmental requirements appears in their local development plans, isn’t generally considered to be a viable solution).

3. Leasehold reform

The leasehold system has been criticised for unfair practices, such as escalating ground rents and complex enfranchisement processes. Recent government initiatives, including completely new legislation in the form of the Leasehold and Freehold Reform Act 2024 (LFRA), aim to address these issues. In addition, the current government has set its heart (albeit lest we forget how fickle hearts can be…) on commonhold replacing leasehold tenure altogether.

Proposed reforms: 

  1. Abolishing leasehold for new houses: The fact that this forms the first section of the LFRA signifies the UK government’s resolve for new leasehold houses to be banned. At the time of writing, this provision (along with many other provisions of LRFA) is not in force, but when it is, this move is expected to shift the market towards freehold ownership, providing homeowners with greater control. 
  2. Enhancing enfranchisement: Once in force, the relevant provisions of the LFRA will make it easier and cheaper for leaseholders to buy their freehold, extend leases and manage their own property. Its key measures to achieve this include the abolition of “marriage value” (which can inflate the cost of lease extensions and freehold purchases for leaseholders with shorter leases), increasing the standard lease extension term to 990 years, reducing ground rents to a peppercorn on payment of a premium, removing the two year requirement for lease enfranchisement claims and increasing the “non-residential limit” to 50% for collective enfranchisement, expanding the eligibility for mixed use buildings. 
  3. Commonhold reinvigoration: In its White Paper released in March 2025, the government set out its intentions to make commonhold the “default tenure” in place of the “feudal leasehold system”. Indeed, encouraging the use of commonhold ownership, where owners hold the freehold of individual flats and collectively own common areas, can provide a fairer alternative to leasehold. However, despite being introduced in 2002, commonhold failed to take off due to various complexities of the regime making it unviable for owners, investors and lenders alike. The proposed shift to commonhold remains a daunting prospect to most. The proof will be in the pudding when the government produces its draft bill later in 2025, with the most likely future scenario being a mixed leasehold and commonhold system for some time to come.

A vision for the future

The centenary of the 1925 Act offers a momentous opportunity to reflect on the evolution of property law and to envision reforms that address the technological, environmental and societal challenges of the 21st century. By embracing digital innovations, prioritising sustainability and overhauling outdated systems like leasehold tenure, we can create a more efficient, fair and forward-thinking property landscape for the next century (‘can’ being the key word here – only time will tell if we have the gumption, foresight and perseverance to see this through). 

So, to answer the question of ‘What’s next?’, with my own philosophical precognition, I leave you with the words of the great Virginia Woolf “the future is dark, which is the best thing the future can be, I think”.

More in the series:

100, 100th-anniversary symbol, 100 symbol, Golden Color, 100 years for a birthday, invitation, wedding, jubilee, and greeting card illustration.

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Rowenna Husselbee
Senior Associate

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Rowenna Husselbee
Senior Associate
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