[2003] UKHL 32, 12 June 2003. Appeal by tenant (S) from a CA judgment ([2002] EWCA Civ 538 Abs65746) on appeal from LT, holding that a re-conversion of flats into a house could not constitute an improvement increasing its value under the Leasehold Reform Act 1967 s9(1A)(d) because it reversed a previous conversion of the house into flats. "Held", appeal allowed. The works that had re-converted the property into a single dwelling, constituted improvements within s9(1A)(d) of the Act and their value fell to be disregarded in determining the enfranchisement price. In order to rely on the improvement disregard, S had to identify the improvements carried out at his and his predecessors in title's expense and satisfy the tribunal that, but for those improvements, the premises would be worth less. The word improvement refers to a physical not an economic concept. The earlier conversion into flats made no difference to the value of the house at valuation date as they had ceased to exist. If the later re-conversion had not taken place, the earlier improvements would have still existed and the dwelling would have been worth less. To the extent that it was worth more, S was entitled to a reduction in the open market value. View judgment at www.publications.parliament.uk. (See also Abs67002).