Labour’s flagship housing policy could collapse “like a house of cards” if courts overturn legislation, warns property legal expert James Carpenter.
9th Apr 20260 3,722 1 minute read Simon Cairnes
Leasehold reform is one of Labour’s key housing policies, but it is now facing an uncertain future after landowners secured the right to appeal the legislation that underpins the Government’s plans.
The reforms rely heavily on the Leasehold and Freehold Reform Act (LAFRA), which is designed to make it cheaper for homeowners to extend leases or buy freeholds, and is part of proposals to abolish leasehold and introduce a £250 cap on ground rents.
A consortium of freeholders launched a legal challenge last year, arguing the measures breached their property rights under the European Convention on Human Rights. While the High Court dismissed the case, the Court of Appeal has now granted permission to appeal on all grounds.
Increasing uncertaintyThe ruling is expected to increase the uncertainty around the timetable for implementing LAFRA and the wider sector reforms, with the case likely to take months to resolve.
The challenge was brought by six landowners, including Cadogan Estates and Grosvenor Group, which claim the changes would leave them significantly out of pocket and amount to a form of compulsory purchase. The Government has previously estimated the policy could cost landlords around £4bn.
James Carpenter, of law firm Forsters, told the Telegraph: “Ground rent investors are expected to scrutinise the outcome of the LAFRA appeal closely. If the landlords succeed in overturning LAFRA, the legality of the proposed ground rent cap will also be in serious doubt.
If the Court of Appeal ultimately pulls that card out, much of the wider legislative programme risks collapsing with it.”
“The Government’s housing policy resembles a house of cards, with LAFRA at its base. If the Court of Appeal ultimately pulls that card out, much of the wider legislative programme risks collapsing with it.”
A spokesperson for the Ministry of Housing, Communities and Local Government says, however, that: “We intend to robustly defend this appeal.”
TagsLeasehold and Freehold Reform Act. 9th Apr 20260 3,722 1 minute read Simon Cairnes Share Facebook X LinkedIn Share via Email