The legislation bans the sale of new leasehold houses, makes it cheaper and easier for people to buy their freehold by abolishing "marriage value" on leases under 80 years, and extends the standard lease extension term to 990 years for both houses and flats.
So far, 13 sections of the Act have been enacted. The UK Government has committed to bringing forward secondary legislation to implement the remaining provisions as soon as possible, however, the current legal challenges have forced a delay on some key elements.
Judicial Review - who's involved and their arguments
In January 2025, the High Court granted permission for freeholders to challenge LAFRA, ruling the application was arguable. A four-day hearing took place in July 2025, but permission to intervene for leaseholder groups was rejected by the Court of Appeal.
The claimants are freeholder groups, representing the owners of approximately 390,000 leaseholds, who state that three parts of LAFRA – the abolition of marriage value, a cap on ground rents, and the removal of legal-cost recovery by freeholders – breach their private property rights as protected by the Human Rights Act 1998.
The freeholders involved in the case claim their combined losses could range between £289 million and £404 million; however, the UK Government’s impact assessment estimated total losses exceeding £1.9 billion in the first decade due to the abolition of marriage value payments alone, highlighting the economic stakes involved in the legal battle.
The UK Government insists that LAFRA pursues a legitimate public interest in creating fairer leasehold terms and that courts must recognise that Parliament is best placed to understand the specific circumstances and needs of the country and allow it to adapt human rights standards accordingly.
What could happen next
A judgment could be expected in weeks (potentially later due to summer). If the UK Government wins, the secondary legislation and consultations needed to progress LAFRA can continue, with some elements of the law potentially coming into force in late 2025 or early 2026.
If freeholders win or partially succeed, parliament will need to amend the Act—likely delaying reforms by months or even years.
Either side may appeal, prolonging final resolution. This raises serious concerns about the reforms being stalled, possibly for years.
Some leaseholder protections can still move ahead
In July 2025, the UK and Welsh Governments launched consultations on mandatory qualifications for managing agents and enhanced transparency around leasehold charges and services.
Propertymark has long campaigned for reform of the leasehold system, including reducing costs and improving support for agents and consumers, and we welcome proposals for standardised service charge demand forms. We continue to engage constructively with the UK Government on agent qualifications, continued professional development, and a code of practice, and will push for their adoption.
Representing members
Propertymark is watching the developments from the judicial review, and we will continue to encourage the UK Government to act as quickly as possible to introduce the LAFRA provisions.
Leasehold properties
We've been working with the National Leasehold Campaign to raise awareness of the abuse of the leasehold system in newly built homes.
