2025 was a rather disappointing year for anyone looking forward to the changes proposed within the 2024 Leasehold and Freehold Reform Act.
Only small changes from the Act have been implemented and a promised 2025 consultation on the valuation methods for calculating the cost of extending a lease or purchasing a freehold – never happened.
The Government did consult on service charges and other charges related to owning leasehold but due to a legal challenge by freeholders on many of the more controversial parts of the 2024 Act delays were inevitable.
However, on 24th October 2025 the High Court of England and Wales dismissed the judicial review challenge to the 2024 Act brought by a group of prominent freeholders. The Judgement (ARC Time Freehold Income Authorised Fund and others) v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2751 – upheld the key reforms introduced by the Act – including the abolition of marriage value and a cap on ground rents within the premium calculations. See the full Judgement hear – https://caselaw.nationalarchives.gov.uk/ewhc/admin/2025/2751
The applicants are still considering whether to appeal. This could further delay the implementation of the 2024 Act and as the Government wants to combine this with the proposed Commonhold Bill – set for early 2026 – it is unlikely that the 2024 Act will be implemented in the near future. However the announcement of the proposed cap on current ground rents today could point to a speedier implementation.