Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of the High Court judgment in Arc Time Freehold Income Authorised Fund and others v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2751 (Admin) on the timeline of implementing (a) the removal of the requirement for leaseholders to pay freeholders' legal and professional fees when extending leases, (b) the cap on ground rent calculations for lease extensions and (c) the changes to marriage value provisions for leases with 80 years or less remaining.

Following a robust defence from the government, the High Court comprehensively dismissed challenges brought to the Leasehold and Freehold Reform Act 2024. We warmly welcome the Court’s judgment.

The reforms that were challenged will make it easier and cheaper for leaseholders to extend their lease or buy their freehold by removing the requirement for marriage value to be paid; and capping the treatment of ground rents in the valuation calculation at 0.1% of the freehold value.

Valuation rates used to calculate the enfranchisement premium will be set by the Secretary of State in secondary legislation. We will consult on valuation rates and commence the relevant provisions as soon as possible.

As per my Written Ministerial Statement of 21 November 2024 (HCWS244), primary legislation will be required to rectify a small number of specific flaws in the 2024 Act before the Act’s enfranchisement provisions are commenced.