Why are the much promised leasehold reforms taking so long? Is the Government running scared of the landed gentry?
Just some of the questions arising from Lord Justice Holgate’s rejection last week of leaseholders request for representation at a judicial review that will affect their interests.
In May 2024, on the last day before Parliament closed for the election, long awaited leasehold reforms were passed. The Leasehold & Freehold Reform Act (LFRA) was now on the statute book but most of its clauses still needed secondary legislation before becoming law.
But at the beginning of the year, six large UK land owners called for a judicial review of LFRA, claiming it was incompatible with their human rights as it compromised their right to the peaceful enjoyment of their property (revenue). Their concerns include the question of how lease extensions should be valued – one of the main revenue streams the freeholders seek to protect, and the case is to be heard 15-18 July.
This prompted five leasehold groups to request that the human rights of leaseholders be represented at the review as well. Leasehold Knowledge Partnership, Free Leaseholders, Brighton, Hove and District Leaseholders Association, Home Owners Rights Network and Social Housing Action Campaign presented their cases to the court. Pro-bono support was provided by Paul Ridge of Bindmans and Laura Collignon of Thomas More Chambers.
But the judge has said no, arguing that much of the their evidence about freeholders misusing their power was already covered in the Law Commission’s report of 2020 setting out the need for reform. The full judgement is yet to be published but the implication remains that leaseholders’ human rights are less relevant to the justice system than those of non-human corporate entities and landed gentry.
While the legal charade continues many leaseholders face spiralling service charge costs, or are unable to extend a lease due to punitive costs. Many more leaseholders have been billed for remediation costs where flammable cladding or other building safety issues have been found, with scant concern for either their human rights or physical safety.
The power imbalance in the leasehold contract has been exploited for far too long. We have a Prime Minister who is a former human rights lawyer. It’s not a good look if he allows this travesty of human rights legislation to subvert the will of Parliament. It’s not just about leasehold anymore, it’s about democracy!