[2025] EWHC 2751 (Admin)

Fecha: 24-Oct-2025

Are the measures rationally connected with the identified objects?

Are the measures rationally connected with the identified objects?

338.

Each of the three measures which form the basis of the challenges in issue at this hearing:

the Ground Rent Cap;

ii)

the Marriage Value Reform; and

iii)

the Costs Recovery Reform;

is rationally connected with what we have found to be the objectives of the LFRA 2024.

339.

In particular:

Capping ground rents at 0.1% for the purposes of the Term value will make enfranchisement cheaper for tenants, thereby contributing to the rebalancing of the relationship between tenants and landlords to address the wasting asset problem. The measure will provide some protection to tenants against high or escalating ground rent to the extent that they would inhibit enfranchisement;

ii)

Removing marriage value from the calculation of enfranchisement premiums will make enfranchisement cheaper for tenants, thereby contributing to the rebalancing of the relationship between tenants and landlords to address the wasting asset problem. The measure will also simplify the process of enfranchisement by avoiding the need for expert input on these issues;

iii)

Abolishing the tenant’s obligation to pay the landlord’s non-litigation costs of any enfranchisement premiums will make enfranchisement cheaper for tenants, thereby contributing to the rebalancing of the relationship between tenants and landlords to address the wasting asset problem. The measure will also simplify the process of enfranchisement by encouraging greater efficiency in the conduct of enfranchisement transactions and reduce the risk of tenants being inhibited from enfranchising because of uncertainty as to the amount of their liability for the landlord’s costs.

340.

The claimants’ submissions on the absence of rational connection were premised on the contention that the legitimate object of the LFRA 2024 was limited to benefiting owner-occupiers. We have rejected that submission, but note that even if we had accepted it, the rational connection would have been satisfied, because the introduction of such a distinction would have reduced the coherence and increased the complexity of the enfranchisement scheme.