Propertymark is calling on the Burnham government to accelerate leasehold reform and introduce immediate protections for existing leaseholders.

And it warns that the long-term move towards Commonhold will not help people struggling with the system today.

Propertymark’s latest report draws on responses from more than 1,200 leaseholders and 200 Propertymark members and finds that many of the problems identified almost a decade ago remain unresolved.

The findings include:

• 93% of leaseholders would not buy a leasehold property again.
• 86% have seen their service charge increase in the past two years.
• 89% say it is difficult to challenge unfair service charges.
• More than 78% of estate agents have taken at least one leasehold property off the market because it was unsellable.
• Less than 1% of agents say selling leasehold property has become easier over the past two years.
• 74% of agents identify onerous service charges as a major barrier to selling leasehold flats.

Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “Nearly a decade after we first highlighted the problems with leasehold, too many homeowners are still navigating a system that can make their homes difficult, expensive and, in some cases, effectively impossible to sell.

“The move towards commonhold is welcome, but existing leaseholders cannot be expected to wait decades for change. If someone is facing an unaffordable service charge, a building safety problem or a property they cannot sell today, a better system in the future does not solve their problem.

“The UK Government must now go further and faster to unlock the market for existing leaseholders and restore confidence for consumers and property professionals.”

Service charges putting buyers and sellers off

Service charges are one of the biggest barriers to leasehold sales. 

Propertymark members report cases where annual charges have risen from around £1,000–£2,000 to £3,000-£4,000, creating affordability concerns and, in some cases, affecting mortgageability.

The problem starts before a sale is even agreed. Propertymark found that 40% of members say it can take more than 15 days, and sometimes months, to obtain the leasehold information needed for a transaction, while only 17% typically receive it within one to five days.

Building safety could leave homeowners waiting decades

Building safety defects continue to create uncertainty for leaseholders, buyers and lenders.

Propertymark’s analysis suggests remediation of affected flats in England could take approximately 17 to 33 years, depending on the number of buildings requiring work and the rate at which remediation is completed.

The organisation says unresolved building safety defects can leave properties difficult to mortgage and sell, adding another layer of uncertainty.

Propertymark’s call for action

Propertymark is calling on the UK Government to:

• Bring forward the proposed 40-year transition for reducing ground rents to a peppercorn.
• Introduce standardised lease formats and terms to make costs and obligations easier to understand.
• Improve redress for leaseholders so unreasonable service charges and costs can be challenged effectively.
• Create an online database of lease terms to reduce delays during sales.
• Simplify building safety remediation and clarify responsibility for costs.
• Consider financial support for leaseholders seeking to buy their freehold and move towards commonhold.

Timothy Douglas adds: “A functioning housing market depends on people being able to move. If a homeowner cannot sell, a chain cannot progress, a first-time buyer cannot take their next step, and another property cannot enter the market.

“Leasehold reform is therefore not just about changing a legal tenure. It is about restoring confidence, mobility and fairness to the housing market.

“After almost ten years of recognising that the system needs fundamental change, the time for further delay has passed.”