High Court dismisses freeholders’ challenge to Leasehold and Freehold Reform Act 2024

The High Court has ruled that the Leasehold and Freehold Reform Act (LAFRA) 2024 is lawful, dismissing claims that it breaches the right to peaceful enjoyment of possessions under Article 1 of the First Protocol to the European Convention on Human Rights (ECHR).

On the 24 October 2025, after a judicial review hearing brought by six groups of freeholders, the High Court has upheld the government’s position, confirming that the Act can proceed as legislated. The judges found that while the reforms may reduce the financial returns of some freeholders, this did not amount to an unlawful interference with property rights.

The judicial review by freeholders introduced uncertainties and delays in the full implementation of these reforms. Now that the outcome is settled, we look at how we got to this point and what might happen next.

The Leasehold and Freehold Reform Act 2024

The Leasehold and Freehold Reform Act 2024 was introduced by the UK government to overhaul the leasehold system.

Successive governments highlighted issues with the leasehold system, which eventually led to the LAFRA becoming law last year. The aims of the Act included simplifying the processes of extending a lease and buying a freehold and making it cheaper and fairer to do so.

Some provisions of the LAFRA came into effect in January 2025, including the removal of the two-year ownership requirement for lease extension eligibility.

The Act’s other primary measures include:

Abolishing Marriage Value

Marriage Value is the additional amount added to the cost of a lease extension when the lease term is under 80 years. After this point, it becomes far more expensive, which has left some leaseholders trapped in a rapidly devaluing property but unable to afford to extend the lease.

Capping Ground Rents

Freeholders can charge ground rents to leaseholders. While most freeholders are reasonable, this system has been abused by some, leading the government to implement limits on ground rents to prevent excessive charges.

Extending Lease Terms

Before the LAFRA, the rules for lease extensions were different for houses and flats. Since the legislation became law, this has been standardised such that all lease extensions are for 990 years regardless of property type.

Why was the process delayed?

In January 2025, six groups of freeholders were granted permission to challenge the LAFRA through a judicial review.

This means that they brought a legal case about the government challenging the legality of the Act. Under the powers of a judicial review, a court may invalidate laws, acts, or other governmental actions if they are proven to be incompatible with a higher authority.

In challenging the LAFRA, the claimants made the case that the reforms would infringe upon their right to enjoy private property, as enshrined in the European Convention of Human Rights (ECHR).

Specifically, the case sought to overturn new rules relating to lease extension pricing, such as the abolition of marriage value and the capping of ground rents, which the claimants said could amount to an unlawful interference with property rights. Their case alleged that the change would cost them hundreds of millions of pounds.

The judicial review hearing concluded on 18 July 2025, after four days of proceedings. The case was heard by Lord Justice Holgate and Mr Justice Foxton.

The case delayed the full implementation of the reforms, while the government has already acknowledged that further consultations and secondary legislation are needed before the reforms can be fully enacted.

Where do we go from here?

There are an estimated 4.5 million owners of leasehold properties in England and Wales, so every legal and political decision has a real impact on people’s homes and finances up and down the country.

Following the High Court’s decision, the government is expected to proceed with implementing the remaining provisions of the LAFRA, subject to secondary legislation and consultation on technical details, such as valuation methodology and transitional arrangements.

It remains to be seen whether the claimants will appeal the decision to the Court of Appeal. If an appeal is lodged, this could delay the final implementation of certain provisions.

If the reforms proceed without any further significant legal obstacles, the government aims to implement the remaining provisions by 2026.