High Court London Upholds Key Leasehold Reforms, Rejects Landlords’ Human Rights Challenge

The High Court in London has dismissed all six judicial review claims brought by major landlord and investment groups challenging core provisions of the Leasehold and Freehold Reform Act 2024 (LAFRA). The decision confirms the Government’s right to overhaul leasehold valuation rules and rejects arguments that the reforms breach property rights under the European Convention on Human Rights (ECHR).

The case — R (ARC Time Freehold Income Authorised Fund & Others) v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2751 (Admin) — was heard by Lord Justice Holgate and Mr Justice Foxton. Their joint judgment, handed down on 24 October 2025, represents a major victory for the Government’s leasehold reform programme.

At issue were three controversial elements of LAFRA: the 0.1% ground-rent cap, the abolition of marriage and hope value, and the change requiring each party to bear its own non-litigation costs in enfranchisement and lease-extension cases.

Ground-rent cap upheld

Landlords argued that the 0.1% cap on ground rent used in enfranchisement valuations was arbitrary, retrospective and unfairly stripped them of contractual income. The Court disagreed, finding that Parliament acted within its “wide margin of appreciation” on social and economic policy. The judges said the figure had a reasonable evidential basis in the Law Commission’s work, CMA analysis, and the Government’s impact assessment.

Marriage and hope value removed

The claimants also attacked the abolition of marriage value — a long-standing valuation concept that gave freeholders 50% of the uplift when leases under 80 years were extended. The Court said the change was a legitimate policy choice designed to correct an inherent unfairness in the leasehold system, which forces leaseholders to pay again for an asset that naturally declines in term. Concentration of the impact in London did not make the measure disproportionate, the judges ruled.

Cost recovery reform justified

On costs, the Court upheld Parliament’s decision to end automatic recovery of landlords’ non-litigation expenses, noting that in normal market transactions each party bears its own professional fees. The reform was found to make the process simpler and fairer while retaining limited exceptions for small-value cases.

No breach of property rights

In a significant passage, the Court confirmed that Article 1 of Protocol 1 to the ECHR — which protects property rights — does not entitle landlords to “full market value” compensation, only to compensation “reasonably related to value.” The judges said the reforms strike a “fair balance” between public interest and private rights.

Next steps

Landlord groups have 21 days from 24 October to seek permission to appeal. The judgment leaves the Government’s leasehold reform agenda intact, though officials have yet to publish the promised 2025 consultation on remaining valuation components.

Legal commentators say the ruling cements LAFRA’s position as the most far-reaching shake-up of leasehold law in a generation — and signals the courts’ willingness to defer to Parliament on broad questions of housing fairness and market regulation.

Source: CMS

EU Rail Travel Reaches Record High in 2024, Led by Germany, France, and Italy

Passenger travel by rail across the European Union reached its highest level on record in 2024, with strong demand in nearly every member state. According to the latest EU data, rail operators carried the equivalent of 443 billion passenger-kilometres last year, marking a 5.8% increase from 2023 and surpassing pre-pandemic levels for the first time.

Germany remained the continent’s largest rail market, recording 2.9 billion passenger journeys, followed by France (1.32 billion) and Italy (843 million). These three countries accounted for nearly two-thirds of all rail trips within the EU. The recovery was particularly pronounced in Western Europe, where the expansion of high-speed and regional networks helped attract more travellers back to trains.

Central and Eastern Europe also saw notable growth. Hungary led the bloc with an exceptional 60% rise in passenger numbers, reflecting a rebound in domestic travel and improved services on key intercity lines. Latvia (+13.9%) and Ireland (+10%) also recorded double-digit increases. In contrast, Romania (-4.9%) and Bulgaria (-3.1%) reported declines due to ongoing infrastructure issues and limited service capacity.

When measured against population, Luxembourg emerged as the EU’s most frequent user of rail, averaging nearly 33 train journeys per person in 2024. Denmark and Germany followed closely, both exceeding 30 trips per capita. At the opposite end, Greece and Lithuania registered the lowest usage, with only around one to two train journeys per person during the year.

Analysts note that the upturn in passenger rail transport reflects broader efforts to improve connectivity, digital ticketing, and cross-border services under the EU’s Green Deal transport strategy. The growing preference for train travel is being driven by sustainability targets, higher fuel costs, and renewed investment in inter-city and regional rail links.

Freight transport by rail, however, showed a slight decline of 0.8%, as weak industrial output and logistics bottlenecks weighed on cargo movement.

Overall, 2024 reaffirmed rail’s role as one of the most resilient and sustainable transport modes in Europe — with more passengers on board than ever before and steady progress toward a cleaner, interconnected mobility system.

Rail passenger transport in the EU, 2024

(Main undertakings; million passengers and % change vs 2023)

Rank	Country	Passengers (million)	Change 2024 vs 2023 (%)	Passengers per capita
1	🇩🇪 Germany	2 904	+5.0	30.0
2	🇫🇷 France	1 320	+6.2	19.3
3	🇮🇹 Italy	843	+7.5	14.2
4	🇪🇸 Spain	708	+8.0	14.9
5	🇵🇱 Poland	392	+3.1	10.1
6	🇳🇱 Netherlands	364	+4.7	20.3
7	🇸🇪 Sweden	272	+5.5	25.7
8	🇦🇹 Austria	267	+4.3	29.4
9	🇨🇿 Czechia	258	+5.8	24.0
10	🇧🇪 Belgium	250	+3.6	21.2
11	🇭🇺 Hungary	219	+60.0	22.0
12	🇩🇰 Denmark	196	+6.1	31.0
13	🇫🇮 Finland	184	+5.9	26.5
14	🇷🇴 Romania	162	−4.9	3.6
15	🇬🇷 Greece	14	−2.5	1.5
16	🇱🇹 Lithuania	5	−3.0	1.5
17	🇱🇻 Latvia	18	+13.9	9.3
18	🇪🇪 Estonia	8	+7.0	6.0
19	🇧🇬 Bulgaria	25	−3.1	3.6
20	🇱🇺 Luxembourg	21	+5.3	32.8
21	🇮🇪 Ireland	55	+10.0	10.8
22	🇸🇮 Slovenia	24	+8.5	11.4
23	🇭🇷 Croatia	33	+5.1	8.2
24	🇸🇰 Slovakia	44	+4.8	8.0
25	🇵🇹 Portugal	106	+6.6	10.4

Source: Eurostat dataset rail_pa_typepas, update 21 Oct 2025; Eurostat news release “Rail passenger transport increased by 5.8 % in 2024” (31 Oct 2025).

Czech Coalition Plans Housing Reforms and New Approach to Building Law

The incoming Czech government, formed by ANO, SPD, and Motorists, has set out plans to overhaul the country’s building legislation and housing policy. According to the coalition’s draft programme, housing would be formally recognised as a matter of public interest, opening the way for faster approval of large residential developments and new financial support measures for young families.

The draft document, sent to the president for review at the end of October, outlines a broad reform agenda combining housing affordability with deregulation in the construction sector. The coalition intends to amend the Building Act, returning to key features of the 2021 version that centralised planning under a national authority. It also pledges to simplify the approval process by improving the digital building-permit system, which has faced technical difficulties since its launch. The new administration wants a modular, phased approach to digitisation and promises thorough testing before rollout.

A central pillar of the programme is the creation of preferential loans for young families purchasing their first homes, alongside partial state support for mortgage interest. Families with small children and workers in key professions would qualify for additional benefits. The coalition also proposes a bonus for newborn children and a new framework for tax depreciation on corporate and service housing built for employees.

The State Investment Support Fund is expected to take on a larger role in housing advice and coordination. Planned amendments to the housing support law would strengthen cooperation with municipalities and promote cooperative and affordable rental housing through state guarantees and targeted investment incentives. The private sector would be encouraged to participate in new housing and student-dormitory construction.

At the same time, the government plans to scale back what it calls non-functional or overly strict environmental and energy standards that have increased the cost of construction. The coalition also confirmed its opposition to the extension of the EU’s ETS2 emissions trading system, arguing that it could further raise housing costs.

If adopted, the proposals would mark a significant shift in Czech housing policy—combining state-backed financing and cooperative models with lighter regulation and centralised planning. The coalition is expected to publish its full programme and sign the official agreement in early November.

CTP Signs 34,450 sqm Lease with Global Logistics Company in Sulechów

CTP, Europe’s largest listed industrial and logistics property developer by gross lettable area, has signed a lease agreement with an international logistics service provider for 34,450 sqm at CTPark Sulechów in western Poland.

The tenant will occupy 33,376 sqm of warehouse space and 1,074 sqm of offices, representing nearly half of the park’s developed area. The facility is expected to be operational later this year.

CTPark Sulechów is located less than 70 km from the German border, offering direct access to major transport routes serving both the Polish and German markets. Alongside the new tenant, Domator24, a Polish producer of gaming chairs and metal furniture, also operates within the park.

CTP has completed 74,995 sqm of space at Sulechów to date and plans to add a second warehouse of 12,837 sqm. The park is CTP’s second investment in Poland’s Lubuskie Province, complementing CTPark Iłowa, where two buildings with a combined area of 99,148 sqm are already in operation along the A18 motorway.

According to Piotr Flugel, Managing Director of CTP Poland, the development reflects the continued expansion of contract logistics and e-commerce operations in the region:

“Warehouses today are a key element of modern logistics chains, supporting efficient goods flow and scalable processes. Global companies are increasingly choosing Poland for its quality infrastructure and strategic location, which enables distribution across Western and Central Europe.”

CTP’s growing portfolio in western Poland aligns with broader trends in the Central and Eastern European logistics market, where nearshoring, manufacturing growth, and e-commerce continue to drive demand for modern, flexible warehouse space.

Central Europe Intensifies Crackdown on Unfair Trading Practices in the Food Supply Chain

Regulators across Central Europe are stepping up oversight of large retailers amid growing concerns about the balance of power between supermarket chains and their suppliers. The latest example came from Romania, where the Competition Council (RCC) launched unannounced inspections at six major retail groups suspected of unfair practices in the dairy sector.

The dawn raids targeted retailers active across supermarket, hypermarket and cash-and-carry formats. According to the RCC, the inspections form part of an ongoing inquiry into compliance with Law No. 81/2022, which transposes EU Directive 2019/633 on unfair trading practices in the agricultural and food supply chain. The legislation aims to prevent abuses of bargaining power by larger buyers and to protect smaller producers from exploitative contract terms.

The RCC said evidence gathered during its market study on milk and dairy products had revealed potential irregularities, including delayed payments for perishable goods, excessive cumulative discounts, and delisting threats linked to shelf-access fees. The authority underlined that the inspections do not imply guilt but are intended to verify whether contractual relationships between retailers and suppliers comply with the law. If infringements are confirmed, fines could reach RON 600,000 or 1 % of annual turnover, and companies may be ordered to cease the conduct.

Although the Competition Council did not name the firms involved, Romanian media identified the chains as Metro, Selgros, Auchan, Carrefour, Kaufland, and Mega Image. The case forms part of a broader sector-wide review of the dairy and wider agri-food market and reflects Romania’s commitment to aligning national enforcement with EU policy objectives.

Regional trend toward stricter enforcement

Romania’s action is not isolated. Other Central European authorities have also strengthened scrutiny of buyer-supplier relationships in recent years.

In Poland, the Competition and Consumer Protection Office (UOKiK) has pursued several investigations into retailer conduct and continues to highlight agri-food supply chains as a priority area. Enforcement has focused on payment terms, rebate structures, and supplier contracts.

The Czech Competition Authority (ÚOHS) applies its national “significant market power” rules to the food sector and has issued fines where larger chains used contractual leverage against smaller producers.

In Austria, the Federal Competition Authority (AFCA) completed a sector inquiry into the food industry, identifying systemic issues such as payment-term pressures and limited transparency in commercial negotiations. The findings have led to plans for enhanced monitoring throughout 2025.

Other countries, including Slovakia, Hungary, Slovenia, Croatia, and Bulgaria, have reinforced their frameworks through national laws implementing the same EU directive. Croatia’s law extends its reach to contracts governed by foreign law when domestic effects are felt, while Slovenia combines competition enforcement with an ombudsman dedicated to supplier complaints.

A common European direction

Across the region, authorities are aligning around the same goal: ensuring fair dealing in the food chain and curbing practices that disadvantage primary producers. Inflation, supply-chain cost pressures, and market concentration have sharpened the focus on retailer behaviour.

The Romanian raids mark one of the most visible enforcement steps so far and underline a coordinated Central European shift toward active policing of unfair trading practices in food retail. More investigations—particularly in sensitive sectors such as dairy, meat, and fresh produce—are expected as national regulators follow through on EU-wide commitments to protect smaller suppliers and restore fair competition in the agricultural supply chain.

Poland’s Labour Market Stable in Q2 2025 as Wage Growth Slows Slightly

Poland’s labour market continued to display resilience in the second quarter of 2025, with steady employment and only a marginal shift in activity levels. However, the latest data from the national statistics office show that while wages remain considerably higher than a year ago, the pace of growth is beginning to ease.

The share of people either working or actively looking for work in Q2 2025 edged up slightly compared with the first quarter, maintaining one of the highest participation rates in the region. Employment levels remain stable, underlining the strength of Poland’s labour market despite weaker demand in some manufacturing and export-oriented sectors.

Average monthly earnings in the enterprise sector stood at just over PLN 8,900, a modest dip from the previous quarter but nearly 11% higher than the same period in 2024. The figures suggest that while wage growth has cooled since the rapid increases seen last year, real incomes continue to rise as inflation pressures ease.

The small quarterly decline in nominal pay points to a gradual normalisation of wage dynamics after two years of rapid increases driven by labour shortages and price volatility. Analysts note that the market is moving toward greater balance, with slower wage growth potentially helping employers manage costs without significant job losses.

For the property and business sectors, the data present a mixed picture. Strong year-on-year income growth supports household purchasing power, benefiting residential and retail segments, while the levelling off of wage momentum may reduce upward pressure on operating expenses for logistics, industrial, and service employers.

Overall, Poland’s workforce remains one of the most active in Central Europe, with stable employment and rising real earnings supporting domestic demand. The coming quarters will reveal whether this moderation in wage growth marks the beginning of a more sustainable phase for the Polish economy or a sign of broader cooling in the labour market.

Moldova Sees Fewer Building Permits Despite Growth in Construction Output

The number of new building permits issued in Moldova fell in the first nine months of 2025, even as the total value of construction works continued to rise. Data from the National Bureau of Statistics (NBS) show that authorities granted 2,187 building permits between January and September, representing a 7.8% decline compared with the same period a year earlier.

The drop was most pronounced in the non-residential sector, where permits fell by over 22% year-on-year, suggesting weaker investment appetite among commercial and institutional developers. By contrast, residential permits showed only a marginal decrease of 1.4%, indicating that demand for housing remains comparatively stable.

The decline in new permits contrasts with the strong growth recorded in construction output earlier this year. In the first half of 2025, the total value of construction works carried out in the country rose by more than 35% compared with the same period in 2024, according to the NBS. Economists attribute this divergence to the completion of ongoing projects and a rise in renovation and repair activity, rather than new developments breaking ground.

Despite the slowdown in permit issuance, the construction industry continues to play a crucial role in Moldova’s modest economic expansion, contributing to the 1.1% GDP growth recorded in the second quarter of 2025. The sector remains an important source of employment and public investment, particularly in infrastructure and residential renewal.

However, industry observers warn that if the fall in new permits persists, it could lead to a slowdown in building activity in 2026 as the current project pipeline thins. Rising financing costs and cautious investor sentiment, particularly in commercial real estate, are also cited as potential headwinds for new development.

While housing demand remains relatively resilient, developers face ongoing challenges linked to construction material costs, workforce shortages, and slower approvals. For now, Moldova’s construction sector continues to expand on the strength of projects already underway—but the latest figures signal that fewer new ones may be entering the pipeline.

Slovak Business Confidence Falls as Industry Weakens in October

Business sentiment in Slovakia declined in October, as industrial producers reported falling orders and weaker expectations for the months ahead. According to new data from the national statistics office, confidence among manufacturers dropped noticeably, offsetting modest gains in construction and steady conditions in retail.

The survey shows that industrial companies faced a slowdown in both domestic and export demand, particularly in machinery, chemicals, and automotive production. Many firms cited a lack of new contracts and a shortage of qualified labour as the biggest challenges. Several also noted that tighter financing conditions and cost pressures were limiting their ability to expand.

In contrast, the construction sector showed some resilience. Builders reported slightly stronger activity and better hiring prospects, though many continue to struggle with financial constraints and delays in public-sector investment. Retail and trade activity remained broadly stable, with companies maintaining cautious optimism heading into the winter season.

The service sector, which includes finance, transport, and professional activities, became more cautious, reflecting lower demand in certain segments and growing concern about the general economic outlook.

On the consumer side, sentiment remained subdued. Slovak households are still worried about rising living costs and job security, although attitudes toward savings have improved somewhat since the summer.

Overall, the October figures suggest that Slovakia’s economy is losing momentum, with weaker output expectations and lingering uncertainty over future tax and spending policies. While construction and retail continue to hold steady, the slowdown in industry — traditionally the country’s growth engine — points to a more challenging final quarter of the year.

Online Bookings for Tourist Accommodation in Poland Rise Sharply in Early 2025

Poland’s short-term rental market saw a marked increase in activity during the first quarter of 2025, as data from Statistics Poland (GUS) show that tourists made 1.1 million online bookings through major digital platforms — a 17% rise compared with the same period last year.

The number of overnight stays reached 7.2 million, up 11.2% year-on-year, underscoring the continued popularity of short-stay accommodation offered via platforms such as Airbnb, Booking.com, and Expedia. The data, collected in cooperation with the European Commission, reflect only rentals listed through these providers and do not represent the entire Polish accommodation market.

Domestic demand drives growth

Polish tourists were the key growth driver in early 2025. Domestic bookings accounted for nearly three-quarters (73.8%) of all stays, rising 24.6% from last year to 0.8 million. By contrast, bookings by foreign visitors fell marginally — down 0.1% year-on-year to 0.3 million.

Among the country’s 16 regions, Małopolskie Voivodship (which includes Kraków and Zakopane) recorded the highest number of bookings — 222,000, followed by Mazowieckie (Warsaw region) with 203,000, and Dolnośląskie (Wrocław region) with 155,000. Together, these three regions accounted for over half of all overnight stays made via booking platforms.

The Opolskie region, while the smallest market, recorded the fastest growth rate — up 37% year-on-year, albeit from a low base.

Foreign travellers’ profile

Foreign visitors accounted for 26.2% of bookings and spent 2.4 million nights in total. The largest groups came from Ukraine (15%), Germany (14.4%), the United Kingdom (5.2%), the Czech Republic (4.8%), and Spain (4.2%). More than half of all foreign tourists (55%) originated from EU countries.

Major city and resort performance

When combining platform data with traditional accommodation statistics, Warsaw led the market with 2.8 million overnight stays, including 1.8 million by Polish tourists and 1 million by foreign visitors. Kraków followed with 2.2 million, while the Tatra County, home to Zakopane, ranked third with 1.9 million overnight stays.

For 2024 as a whole, GUS recorded 134.4 million overnight stays across all tourist accommodation in Poland, up 8.6% from 2023. Warsaw, Kraków, and the seaside Kołobrzeg County were the top-performing destinations.

Broader context

The data reinforce the continued expansion of Poland’s short-term rental market and the rising role of digital booking platforms in shaping tourism demand. Domestic travel remains the main growth engine, supported by a robust economy, improved mobility, and diversified tourism infrastructure.

At the same time, the slight dip in foreign bookings suggests that while inbound tourism remains stable, competition across Central Europe is intensifying. The next GUS update, due in mid-2026, will shed further light on how these early-year trends translate into the peak travel season.

Source: Statistics Poland (GUS), Rental of Tourist Accommodation Establishments in Poland via Booking Platforms in the First Quarter of 2025, published 31 October 2025.

EU Tax Revenues Stable in 2024, Official Data Yet to Confirm Reported Increase

Reports suggesting that tax revenues across the European Union and the euro area rose in 2024 have not yet been confirmed by official data. According to the latest verified information from Eurostat, the most recent figures available cover the year 2023, when the overall tax-to-GDP ratio declined slightly after several years of steady growth.

In 2023, taxes and social contributions accounted for around 40% of the EU’s gross domestic product, with the euro area recording a similar figure. This represented a modest drop from 2022, when the ratio was above 40.5% for both groups. The decline reflected slower economic growth and targeted tax relief measures introduced in several member states in response to high inflation and energy costs.

No new data for 2024 have yet been released through Eurostat’s official channels. While some national finance ministries have issued their own projections, these are not harmonised across countries and have not been validated by the EU’s statistical office. As a result, any reported increase in the tax-to-GDP ratio remains unverified.

The ratio, which measures the share of taxes and social contributions in the economy, tends to move gradually rather than sharply from year to year. Structural differences across the bloc remain significant: Northern and Western European countries such as Denmark, France, and Belgium maintain the highest revenue shares, while Ireland, Romania, and Malta sit at the lower end.

Eurostat’s next comprehensive update on EU tax revenue is expected in autumn 2025. Until then, the 2023 data remain the benchmark for comparing fiscal capacity and government funding trends across the European Union.

Source: Eurostat

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