[2025] EWHC 2751 (Admin)

The ECHR Memorandum on the Bill, as amended at the House of Commons Committee stage, was published on 16 February 2024 (“the ECHR Memorandum”). This addressed the leasehold residential sector as a whole. It referred to the limited control of many leaseholders, their exposure to “the risk of abuse and bad practice”, “lack of transparency”, escalating ground rents and unfair lease terms, and barriers to enfranchisement ([2]-[4]). The ECHR Memorandum contained the now-familiar statement at [6]:

“Government intervention is needed to help rebalance power in the market and empower leaseholds to take greater control of the homes they have paid for, whilst maintaining the legitimate rights of landlords/freeholders.”

At [18], the document referred to “the Government’s aim of improving access to enfranchisement for all leaseholders and simplifying the enfranchisement process.”

At [10], the ECHR Memorandum explained that, in the Government’s view, the measures in the Bill were compliant with the ECHR and, in particular, A1P1. Mandatory leasebacks furthered the Government’s policy aims of “making collective enfranchisement more accessible and affordable for leaseholders” [33] and the right to a 990-year lease pursued “a legitimate policy aim of addressing the historic imbalance between freeholders/landlords” [35]. The ECHR Memorandum explained that “all premium valuation and calculation reforms will engage A1P1 as they are measures determining the level of compensation that a freeholder/landlord will be paid for the loss or change of their proprietary rights.” “They are nevertheless compliant as they balance fairness to leaseholders against the legitimate rights of landlords/freeholders, and pursue legitimate aims ….” [38]. As to the individual measures in issue here:

On 27 February 2024, the Bill went through the Report stage, followed by Third Reading in the House of Commons.

The Bill was then considered by the House of Lords. The First and Second Readings in the House of Lords took place on 28 February 2024 and 27 March 2024 respectively. The committee stage in the House of Lords followed over four days between 22 April 2024 and 1 May 2024. During the debate on 24 April 2024, the Bishop of Manchester introduced an amendment to exempt charities from the removal of marriage value (Amendment 28), which was ultimately withdrawn. During the debate on 24 May 2024, Lord Howard introduced amendments providing for “grandfathering” in relation to marriage value (Amendments 21 and 22), which were ultimately withdrawn or not moved. The Lords Committee stage completed on 1 May 2024.

On 22 May 2024, it was announced that a general election would be held on 4 July 2024. This triggered a short “wash up” period of two days before the prorogation of Parliament on 24 May 2024. The Bill completed its final stages (the Report stage and Third Reading in the House of Lords and Commons’ consideration of the Lords’ amendments) on 24 May 2024 and received Royal Assent on the same day.