An update on the human rights challenges made against LAFRA…

Following the passing of the Leasehold and Freehold Reform Act (“LAFRA”) in May 2024, a number of judicial review claims were made, arguing that many of its provisions were contrary to Article 1 of Protocol 1 (“A1P1”) to the European Convention on Human Rights.

A hearing took place at the Royal Courts of Justice on 30 October 2024 to decide whether these judicial review claims should be stayed until the Government made secondary legislation bringing the majority of LAFRA’s provisions into force. The Court decided that all the claims should proceed.

The next stage of the judicial review was the permission hearing. This was a preliminary hearing for the Court to decide whether the case was arguable and should be allowed to proceed to a full hearing. We understand that the arguments, once again, focused on whether it was possible to bring a judicial review claim challenging legislation in circumstances where not all of the provisions have been brought into force. 

The permission hearing took place on 29 and 30 January 2025 and Mr Justice Chamberlain granted permission for the claims to proceed to a full hearing. The key provisions being challenged are:

  1. The ‘abolition’ of marriage value
  2. The cap on ground rents at 0.1% of freehold vacant possession value
  3. The abolition of the landlord’s right to recover costs

It is important to note that permission to proceed is no guarantee of success and the permission hearing is not a full hearing of arguments. A substantive hearing will be held in July 2025, at which the High Court will decide whether these provisions should be declared incompatible with A1P1. 

That said, it will be interesting to see how this will impact the Government’s timetable for reforms. Will they slow it down to see the outcome of the judicial review, or will they push ahead in the hope of success?

By way of a reminder, the proposed timetable of events issued by Matthew Pennycook in November 2024 is set out below:

Event Date

LAFRA – ENFRANCHISEMENT / RIGHT TO MANAGE

Removal of the two year qualification rule for freehold acquisitions and lease extensions January 2025
Right to Manage reforms in LAFRA (expanding access, reforming its costs and voting rights) Spring 2025
Consultation on capitalisation rate and deferment rate Summer 2025
Primary legislation (amending errors in LAFRA) and secondary legislation to commence LAFRA (including rates) After summer 2025 consultation (but no commitment to a date)

LAFRA – RESIDENTIAL PROPERTY

Consultation on detail of LAFRA’s ban on buildings insurance commissions  “Very shortly”
Consultation on estate charges Summer 2025
LAFRA’s provisions on service charges and landlord’s costs of service charge proceedings 2025
Consultation on reforms to section 20 ‘major works’ process No date
Consultation on regulation of managing agents 2025
Consultation on private estate management arrangements  2025

COMMONHOLD

White paper on commonhold Early 2025
Consultation on banning leasehold flats 2025
Draft Leasehold and Commonhold Reform Bill published (including banning ground rent and forfeiture) Second half of 2025

 

The permission hearing took place on 29 and 30 January 2025 and Mr Justice Chamberlain granted permission for the claims to proceed to a full hearing.

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