Propertymark is backing Labour’s ban on the sale of new leasehold flats.
And it wants to replace them with a commonhold system designed to give homeowners greater control over their properties.
Responding to a consultation by the Ministry of Housing, Communities and Local Government, Propertymark says the reforms could help tackle many of the long-standing problems associated with leasehold ownership.
Under the proposed changes, most newly built flats will no longer be sold on leasehold agreements.
Instead, buyers will own their property through a commonhold structure, giving residents more control over how buildings are managed and removing costs such as ground rent.
Propertymark says this reform is urgently needed after years of growing dissatisfaction among leaseholders.
Research previously carried out by the organisation found:
- 94% of leaseholders regretted buying a leasehold property;
- 93% would not buy another leasehold home
- 76% of property agents say leasehold flats are becoming harder to sell.
Propertymark believes the changes could make flats more attractive to first-time buyers, families and landlords, while helping existing homeowners avoid becoming trapped in difficult-to-sell properties.
However, the organisation also warns that the transition must be handled carefully to protect current leaseholders.
The professional body opposes forcing existing leaseholders to convert to commonhold before selling, arguing this could be unfair.
Timothy Douglas, Head of Policy and Campaigns at Propertymark comments: “Consumers have faced years of uncertainty and frustration with leasehold properties, from escalating charges to difficulties selling their homes.
“A move to commonhold has the potential to create a fairer, more transparent system that gives homeowners greater control and confidence.
“It’s important, however, that existing leaseholders are protected during the transition and that buyers fully understand how commonhold will work in practice.”
Propertymark is also calling for better regulation of property agents and managing agents to ensure consumers receive professional advice and support throughout the changes.
The organisation says education will be key, as many buyers are unfamiliar with commonhold ownership and how it differs from leasehold.
To support the transition, Propertymark plans to provide extensive training and guidance for agents across the UK so they can help consumers understand:
- Whether a property is leasehold or commonhold
- What exemptions may apply
- How commonhold buildings are managed
- What responsibilities homeowners may have
Propertymark adds that the reforms could ultimately improve confidence in the flat sales market and help more homes remain available for sale across England and Wales.
