Leasehold Reform Update – Freeholders’ Judicial Review Claim Dismissed – What happens next?
Last week saw the long-anticipated outcome of the Judicial Review brought by a group of six leading freeholders and property groups against the Government’s Leasehold and Freehold Reform Act (LAFRA).
The Claimants had argued that the amendments in the Act around the ground rent cap, marriage value and costs recovery were incompatible with the peaceful enjoyment of their possessions, under Article 1 of the First Protocol of the European Convention of Human Rights.
The claim was dismissed in the High Court, with the sitting judges finding that the changes that the LAFRA will bring in are not incompatible with the Convention. In a wind-ranging judgement running to 170 pages, the judges rejected all three of the freeholders’ arguments, stating that the Government’s arguments for reforming leaseholds were both ‘robust’ and ‘balanced’.
Posting on X in the aftermath of the decision, Housing Minister Matthew Pennycook wrote:
“The reforms that were challenged will make it easier and cheaper for leaseholders to extend their lease or buy their freehold. Today’s judgement is a resounding victory for millions of leaseholders up and down the country.
“The government will continue to press ahead with implementing the 2024 Act and remains unwavering in its commitment to bring the feudal leasehold system to an end in this Parliament.”
As mentioned in previous updates on this, the legal challenge has certainly held up the implementation of the LAFRA and has left many leaseholders getting increasingly frustrated by a lack of progress. While having an outcome of the Judicial Review is a further step forward in implementing the measures in the LAFRA, this does not necessarily mean that the government will press ahead immediately with the legislation, although this does seem to be the immediate sentiment.
At this stage, we do not know whether the freeholders will seek leave to appeal, but it would seem very likely that this might well happen. If that does happen then there could be further delay as the freeholders seek to exhaust ‘local’ remedies in the UK and then consider referring the case to the European Court of Human Rights in Strasbourg.
Despite the fact that we don’t quite yet know the direction of travel on this, the decision last week is significant for two reasons. Firstly, the Government has crossed another hurdle in its way to implementing the LAFRA. Secondly, with the decision going in the Government’s favour, it will very probably feel emboldened to launch other elements of the pre-implementation plan, and start addressing some of the other hurdles in its way.
In addition we know that the Government is looking to publish the new Draft Leasehold and Commonhold Reform Bill by the end of 2025. Now that the we have the first decision in the Human Rights cases, the publication of this must now be imminent. The exact timing is with MHCLG and the Government of course, but we can expect to see something shortly.
We therefore wait to see what the next steps will be in terms of any further appeal and also from the Government in terms of the pre-implementation consultations will be required. It very much is a case of ‘watch this space.’
Mark Chick is the Joint Head of our expert Landlord & Tenant team.
If you have a query concerning leasehold property, then please contact the experts at Bishop & Sewell’s Landlord & Tenant team by emailing leasehold@bishopandsewell.co.uk or call on 020 7631 4141.
The above is accurate as at 27 October 2025.
The information above may be subject to change. The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis
