Freeholders begin High Court challenge over reforms

Freeholders begin High Court challenge over reforms

1 minute, 43 seconds Read

Tarah WelshHousing reporter

BBC

Leasehold campaigners say they don’t feel represented in the legal challenge

A group of landowners is beginning a judicial review in the High Court to challenge the government’s attempts to reform the freehold and leasehold system of property ownership.

Some of the country’s wealthy landowners and two charities who own the freehold leases of thousands of properties – predominately flats – argue that legislation brought in by the last Conservative government contravenes their human rights.

They say the measures in a law passed in 2024 are contrary to their right to enjoy private property as enshrined in the European Convention of Human Rights (ECHR).

But leaseholders are concerned the hearing will hold up reforms, and complain their voices are not represented in court.

Reuters

The legislation being challenged was brought in by Michael Gove

The hearing is set to start at the High Court from Tuesday and is expected to last until Friday.

When the Leasehold and Freehold Reform Act (LAFRA) was fast-tracked through Parliament before the 2024 general election, the prospect of new laws to “strengthen” rights of leasehold flat and house owners were widely welcomed by leasehold campaigners.

Among other things, the act aimed to simplify extending a lease – the owners’ right to live in the dwelling – and buying a freehold. It would also make the process cheaper for leaseholders.

But several freeholders are challenging some aspects of the new laws concerning the price calculations for a lease extension.

In earlier court documents, it was claimed they could lose hundreds of millions of pounds and argue that the changes leave them without adequate compensation.

Some also argue it prevents them from investing in areas where their properties are and could impact the community and their charitable giving.

They also say that changing the way the amounts are calculated between leaseholders and freeholders would transfer the wealth to large landlords who own multiple flats in central London.

But leaseholders fear the legal challenge could hold up reform for years.

There are an estimated 4.5 million owners of leasehold pro
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