Leasehold and Freehold Reform Act 2024 – Results of the Judicial Review

The results of the judicial review of the Leasehold and Freehold Reform Bill have been published.

This states that the government can effectively;

1. Cap ground rents for lease extension premiums at 0.1% of the market value of the flat
2. Remove marriage value payable to the freeholder.

We still do not know if deferment and capitalisation rates will change, as these are still yet to be set by the secretary of the state, a consultation is needed first. This was supposed to happen over the summer but has been delayed with the judicial review.

We are now in very uncertain grounds as it is extremely likely that the decision at the judicial review will be appealed. The Government could also implement any paragraphs of the Act at anytime.

The next steps will be a court date to see if the claimants are allowed to appeal the decision, then the appeal itself.

Matthew Pennycook did state that he wants any future changes to be ironclad first, winning the judicial review may be enough for the government to press on but equally they may wait to the conclusion of any appeals.

Once the dust has settled, we can advise on the next steps, for the mean time some light reading below:

https://caselaw.nationalarchives.gov.uk/ewhc/admin/2025/2751

If you have any questions, please do not hesitate to get in touch.