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Based on the evidence we have heard, we believe that it is likely that the...

Recommendation
Based on the evidence we have heard, we believe that it is likely that the ground rent provisions in the draft bill, if passed in their current form, would be subject to a legal challenge on the grounds that they breach freeholders’ property rights under Article 1 of the 1st Protocol to the European Convention on Human Rights (ECHR). We do not believe the government is able to mitigate the risk of legal challenge completely, as there will always be an incentive for some businesses to seek to delay legislation which would end a significant revenue stream. Ministers must also be satisfied that a bill is compatible with the ECHR when it is introduced, so they can make a statement of compatibility under the Human Rights Act 1998. Therefore, it is right that the government should take a responsible and considered approach to strike a fair balance between the interests of leaseholders, freeholders, and those invested in ground rents in order to maximise the likelihood of winning a judicial review. (Conclusion, Paragraph 58)