[2025] EWHC 2751 (Admin)

In October 2018, the Ministry of Housing, Communities and Local Government (“MHCLG”) published a consultation paper, “Implementing reforms to the leasehold system in England”. The Ministerial foreword contained the familiar references to “homes” and “home ownership”, but also referred to “taking a fundamental look at the way the leasehold market works with fresh eyes to make sure people have a choice of housing tenure that works for them, rather than accepting carte blanche the way things have been done in the past.” The consultation related to proposed controls on the use of leasehold in newbuild houses, including ground rents.

The aim of the HCLGSC Report was to build on the Law Commission’s work, including assessing whether the reforms proposed by the Government at the time went far enough. Evidence was submitted to the Select Committee on behalf of some of the claimants in the present claim. The HCLGSC Report contained a number of references to “leaseholders as consumers” or “occupiers”, but also as “customers”. Leases were referred to as a “wasting asset” ([10]), and the report referred to a desire to replace leasehold with commonhold ([42]-[43]). The report made certain factual findings on which both sides have sought to rely. As they relate to disputed factual matters, we accept the Speaker’s submission that they cannot be relied upon for the purpose of establishing the truth of any of the facts stated (see ALR Annex B at [88]).

In June 2019, the Government published a summary of consultation responses and the Government’s response in relation to the MHCLG consultation on reforms to the leasehold system in England launched in October 2018. Having taken into account responses to a proposal that ground rent be capped as a general rule at a maximum value of £10 a year, the Government stated that it would “legislate to restrict ground rents to a peppercorn (zero financial value) in future leases” ([3.10]). It took the view that generally, ground rent is unconnected to any maintenance obligations, which are instead financed through service charges ([3.11]).

The Government responded to the HCLGSC Report in July 2019, noting that the Law Commission will “recommend reforms to make the enfranchisement process simpler, easier, quicker and cheaper, including setting out the options that are available to reduce the premiums payable by tenants, whilst ensuring that sufficient compensation is paid to landlords” ([96]).