John Lyon’s Charity (JLC), which operates across nine London boroughs, says changes introduced under the Leasehold and Freehold Reform Act (2024) designed to strengthen homeowners’ rights could cut its income by 10% and has launched a judicial review over it.

JLC is one of London’s leading grant-giving organisations and generates £12-15 million annually through property assets which it then invests in charities delivering mental health, youth work and educational programmes to around 10,000 young people.

It calculates the reforms could see its income drop by £1.37mn per annum.

Lynne Guyton, chief executive of JLC, said: “It will be a hammer blow to less well-off families; it will cut at least 10% of the charity’s income, affecting the funding we award to at least 30 organisations, directly affecting their core and salary costs. As a result, many of the vital charities we support will have no choice but to close or lose staff because we are their only or predominant funder.”

The final hearing in JLC’s judicial review of the Act is being heard in the High Court on  Tuesday 15 July.