[2025] EWHC 2751 (Admin)

We have concluded that capping the ground rent at a level which excludes onerous ground rents from the calculation of the enfranchisement premium, but which allows ground rents up to a percentage of the FVPV (a market value) at the date of valuation, will not result in a landlord receiving compensation which is not reasonably related to the market value of the interest of which he is deprived and which represents a proportionate means of pursuing the legitimate objects of the LFRA 2024. The Ground Rent Cap cannot be criticised on the basis that a less intrusive measure ought to have been adopted, nor that there was no sufficient evidential basis for the selection of a cap of 0.1%. Taking all of these matters into account, we reject the proportionality challenge to the Ground Rent Cap which we are satisfied represents a fair balance between the objects of the LFRA 2024 and the impact on landlords, including specifically the impact on each of the claimants.