Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Leasehold Reform Questioned After Survey Shows High Satisfaction

Government plans to reform the leasehold system are under renewed scrutiny following new data from the English Housing Survey, which shows 93% of leaseholders living in flats are satisfied with their tenure. The survey is the first large-scale quantitative study of leaseholder satisfaction conducted by the Ministry of Housing, Communities and Local Government.

The findings follow 2023 qualitative research by the same department, which found most leaseholders held either positive or neutral views about the leasehold system. The proposed Commonhold and Leasehold Reform Bill, currently under review, would introduce significant changes to the leasehold system, including the removal of contractual ground rent income for professional freeholders responsible for building maintenance, management, and safety compliance.

The Residential Freehold Association (RFA) has referenced the new satisfaction data in its call for a reconsideration of the proposed legislation. The RFA has warned that the changes could lead to some freeholders facing insolvency, creating uncertainty over who would be responsible for affected buildings. The organisation also argues that leaseholders could be required to take on legal duties and liabilities for managing their blocks, regardless of their current views on the system.

According to the Ministry of Housing’s impact assessment, no formal work has been carried out or is planned to quantify what it describes as a “redistributive transfer of wealth” resulting from the reforms. Freeholders would retain legal responsibility for building condition and safety across England and Wales. Separate economic analysis commissioned by the sector estimates the proposals could remove approximately £18.7 billion in ground rent investment value, with a large proportion of financial benefits projected to go to property investors in London and the South East.

The debate over leasehold reform continues as the sector awaits further clarity on the government’s legislative timeline. Recent developments in lease extension financing and broader changes to the residential property sector indicate ongoing evolution in property tenure arrangements across the UK market.