Tue, 15 Jul 2025

Tue, 15 Jul 2025 Freeholders begin High Court challenge over reforms

A group of landowners is challenging the government's attempts to reform the freehold and leasehold system of property ownership.
High Court Judicial Review
* A group of wealthy landowners and two charities have begun a judicial review challenging the government's reform of the freehold and leasehold system.
* The group argues that the reforms contravene their human rights, specifically their right to enjoy private property. Background on Leasehold Reform Act (LAFRA)
* LAFRA was passed in 2024 with the aim of simplifying and making it cheaper for leaseholders to extend their leases or buy a freehold.
* The act aimed to strengthen the rights of leaseholders, but some freeholders argue that it could result in them losing hundreds of millions of pounds. Arguments from Both Sides
* Leaseholders argue that the reforms are essential to protect them from unfair practices and high costs associated with extending their leases.
* Freeholders claim that the changes would transfer wealth to large landlords and prevent them from investing in areas where their properties are located.
* The charities involved in the case, including the John Lyon's Charity, argue that they will lose revenue as a result of the reforms. Impact on Leasehold Reform
* The judicial review is expected to delay the implementation of LAFRA reforms.
* Labour has promised to abolish leasehold altogether and introduce a commonhold model, but this may not happen until the end of the Parliament.
* The government has been cautious about setting out hard deadlines while the legal challenge is pending.
  >>