Leasehold Reform appeal brings further delay and uncertainty for Leaseholders
The long-running saga surrounding the Leasehold and Freehold Reform Act 2024 (LAFRA) has taken yet another turn. Just months after the High Court dismissed freeholders’ arguments that the legislation breached their human rights, the Commons Housing Committee has confirmed that the group of freeholders behind the challenge will appeal the decision.
For many leaseholders who were hoping for clarity after years of political, legal and legislative debate, this latest twist means more waiting – and more uncertainty.
How we got here: A quick recap
LAFRA was introduced to deliver one of the most significant overhauls of England and Wales’s leasehold system in decades. Its aims included:
- Making lease extensions cheaper and simpler
- Abolishing Marriage Value
- Capping onerous ground rents
- Standardising new lease extensions to 990 years, regardless of property type.
While some provisions came into effect in early 2025, implementation of the more transformative elements was paused when six groups of freeholders brought a judicial review. They argued that the Act unlawfully interfered with their property rights under the European Convention on Human Rights.
In October 2025, the High Court rejected those arguments, confirming LAFRA’s legality and giving the government the green light to press ahead. However, the freeholders’ decision to appeal has now put that progress on hold once again.
Why the appeal matters
An appeal to the Court of Appeal is not a quick process. Current expectations suggest:
- The appeal could take up to 18 months to conclude
- If the freeholders then seek permission to appeal to the Supreme Court, the entire court process could stretch on for three years or more.
While these are only estimates, and it is entirely possible the appeal could take longer, or shorter, than expected, a further appeal beyond the Court of Appeal remains a possibility.
Until the appeals are resolved, or withdrawn, uncertainty hangs over how and when many key reforms can be implemented.
For leaseholders waiting to extend their lease, buy their freehold or benefit from updated valuation rules, this means further delay. For freeholders, the outcome could still reshape the value of their assets. The stakes remain high on both sides.
A government dilemma
The High Court confirmed that Parliament acted lawfully. That decision could give ministers confidence to begin implementing outstanding elements of the Act while the appeals continue – but whether the government will take that step remains unclear.
Adding to the difficulty is the fact that full implementation of LAFRA will require substantial secondary legislation, which may take several years to complete. The result is another period of uncertainty, leaving many leaseholders effectively stuck in “limbo”: reluctant to proceed under the old rules, but unable to rely on the new ones.
The government must now choose between:
- Pressing ahead, relying on the High Court ruling; or
- Waiting for the outcome of the appeal, potentially delaying reforms for years.
For those trapped in short leases or facing rising ground rents, neither option offers immediate reassurance.
What could Leaseholders do now?
The current situation is frustrating and, for many, financially significant. Waiting indefinitely may not be the best option – especially for those with leases under 80 years, or where costs are likely to rise.
If you are unsure whether to wait for the appeal outcome or to act now, tailored advice is essential.
If you’d like to explore your options, speak to Salvatore Amico and our specialist Leasehold Team on 0203 871 0039 or leasehold@attwaters.co.uk. We are closely monitoring every development and are here to help you navigate the uncertainty with confidence.
