So we have the outcome of the permission hearing in the High Court today – the six claimants have been granted permission to apply for Judicial Review of various provisions in LAFRA 2024, including marriage value, the implied ground rent cap in the new valuation model, cost shifting and the issues known to affect intermediate landlords. 

The substantive hearing will not be until the end of July.  That will chime in nicely with the proposed consultation on setting rates that is promised for the later part of this year. 

It seems to me that none of these provisions can be brought into force without the government knowing where it is likely to be on these issues. This (together with the prospect of any appeals etc) may make the proposed ‘switch on’ of the valuation aspects of LAFRA some way off. 

There is no doubt much to consider when advising clients. Does this make the time line look even more like 12-18 months from a date later on this year? 

Would that mean 2027? Or maybe even later? Dependant perhaps also on the proposed Commonhold and Leasehold Reform Bill? Lots to consider.

Mark Chick

30th January 2025