After the LFRA 2024 was enacted
After the LFRA 2024 was enacted
On 3 March 2025, the Government published a White Paper on taking steps to bring leasehold to an end and to reinvigorate commonhold.
The current Government’s aims in implementing the LFRA 2024 were set out in a submission dated 1 April 2025 and approved by the Minister of State for Housing and Planning (see Shvidler at [134](6) above). The submission stated that:
“The Leasehold and Freehold Reform Act 2024 is a landmark piece of legislation that addresses issues that have caused widespread concern about the plight of leaseholders, as evidenced by Government consultations, and numerous reports such as those from the Housing, Communities and Local Government Select Committee, the Law Commission and the CMA. These concerns are shared by all the major political parties, which led to the cross-party support the legislation received during its passage through Parliament.”
Paragraph 7 set out the Government’s aims in relation to the LFRA 2024:
“While ensuring sufficient compensation is paid by enfranchising leaseholders to landlords to reflect their legitimate property interests, the Government’s aims and objectives in implementing the enfranchisement reforms contained in the Leasehold and Freehold Reform Act 2024 are:
a. To put an end to the leasehold system of home ownership and support the transition to freehold ownership of flats and houses and ultimately commonhold ownership of flats, by ensuring the cost of enfranchisement is fair and reasonable.
b. To rebalance power in the enfranchisement market, making enfranchisement easier for leaseholders and preventing them from being required to overpay in order to obtain security of tenure or ultimate ownership of properties and removing elements of the costs that the Government believes are unfair.
c. To protect enfranchising leaseholders from the consequences of high and escalating ground rents”
Only limited parts of the LFRA 2024 have been brought into force which are unrelated to the issues in this claim (see s.124 of the LFRA 2024). Some of the reforms, including the setting of rates for the purposes of enfranchisement valuation and costs, will be contained in secondary legislation which has not yet been made.
- Heading
- Lord Justice Holgate and Mr Justice Foxton This judgment is set out under the following headings
- The parties
- The issues raised by the parties
- The legislative history
- The LFRA 2024
- Article 1 of the First Protocol – the legal principles The approach of UK courts to the jurisprudence of the European Court of Human Rights
- The structure of A1P1
- James v United Kingdom
- Strasbourg jurisprudence after James
- Are the effects of the wasting asset problem priced into the premia for residential leaseholds?
- Proportionality in domestic law – general principles
- Assessing the aims of a measure and its justification
- The width of the margin of appreciation
- General rules or bright lines
- Less intrusive measures
- The ab ante principle
- Indirect discrimination
- The requirement for compensation to be reasonably related to the value of the property taken
- The concept of market value
- The evolution of the measures under challenge
- The Law Commission embarks on a further leasehold reform project
- Contributions from Government and Parliament
- The Law Commission Consultation Paper No.238
- Further Government and Parliamentary activity
- The Law Commission Valuation Report (No.387)
- CMA involvement
- The Law Commission Enfranchisement Report (No.392)
- The Government moves towards legislation
- The Impact Assessment
- The Bill
- The ECHR Memorandum
- Engagement by the claimants in the reform process
- After the LFRA 2024 was enacted
- Estimates of the impact of the measures The material before the court
- The challenge to the IA and Addendum IA
- The aims of the measures The rival cases as to the objects of the LFRA 2024
- The legislation
- Hansard
- The statutory interventions prior to the LFRA 2024
- The material from 2016 to the enactment of the LFRA 2024
- Conclusions as to objects
- Are the measures rationally connected with the identified objects?
- The Ground Rent Cap
- The background
- Whether the objects which the Ground Rent Cap was intended to achieve could have been achieved by a less intrusive measure
- The “fair balance” assessment
- Conclusion
- The Marriage Value Reform
- Marriage value and the problem of the tenant’s lease as a wasting asset
- Consideration of marriage value in documents leading to the LFRA 2024
- Aims
- The claimants’ arguments on the justification for the Marriage Value Reform
- Whether the objects which the Marriage Value Reform was intended to achieve could have been achieved by a less intrusive measure
- The “fair balance” assessment
- The submissions of John Lyon’s Charity on the Marriage Value Reform
- Conclusion
- The Costs Recovery Reform
- Aims and justification
- Fair balance assessment
- Conclusion
- The cumulative effect of the measures
- Whether the non-exclusion of charities from the measures violates A1P1? Introduction
- Consideration of the effect of enfranchisement reform on charities prior to the enactment of the LFRA 2024
- The effect on landlords with charitable status
- The case for the Portal Trust Introduction
- The pre-legislative and legislative process
- The objects of the LFRA 2024
- Conclusions
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