The Court of Appeal has granted landowners permission to challenge the Leasehold and Freehold Reform Act 2024, raising the prospect of significant delays to one of the biggest property law overhauls in a generation. The challenge centres on Article 1 of Protocol 1 of the ECHR (European Convention on Human Rights), which protects the right to peaceful enjoyment of property. Landowners argue the Act unlawfully interferes with those rights.

What the Challenge Puts at Risk

The Leasehold and Freehold Reform Act 2024 introduced capped ground rents for existing leases, easier lease extension routes, and stronger rights for leaseholders in England and Wales. Scotland operates under separate legislation and is not affected. Millions of leaseholders have been waiting on these changes. If the challenge succeeds, parts of the Act could be struck down or delayed, according to Property Wire (2026).

For landlords holding leasehold investment properties, this is a moment to pause. The protections you expected to benefit from - or factored into your acquisition strategy - may not land on the expected timeline.

What This Means for Landlords and Their Tenants

Your tenants in leasehold buildings are watching this closely. Many leaseholders are also occupiers who expected reform to improve their position: lower ground rent costs, clearer routes to extend leases, and stronger negotiating power with freeholders. A delay puts those expectations on hold.

From a yield perspective, uncertainty around ground rent costs and service charges affects both landlord returns and tenant affordability. Void risk rises when tenants lose confidence in the system protecting them. This is not a theoretical concern - it is a practical management issue right now.

Consider keeping a close eye on proceedings and speak to your solicitor before structuring any deals around reform outcomes that remain legally contested.