Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Nine in Ten Leaseholders Would Not Buy Leasehold Again, Says Propertymark
A new report by Propertymark, in partnership with the National Leasehold Campaign (NLC) and Leasehold Knowledge Partnership (LKP), has found that 93% of leaseholders would not purchase another leasehold property. The report, titled 'Leasehold: Still a Life Sentence?', highlights ongoing dissatisfaction among leaseholders due to rising costs and complex rules.
According to the findings, 86% of leaseholders have experienced an increase in service charges over the past two years. Additionally, 89% of respondents said it is difficult to challenge unfair costs. The report also notes that 78% of estate agents have removed a leasehold property from the market in the last two years because it was considered 'unsellable'. Onerous service charges were identified by 74% of estate agents as the main barrier to selling flats.
The report argues that progress on leasehold reform has been slow, with only 10 out of 125 sections of the Leasehold and Freehold Reform Act 2024 having been passed so far. No further regulations have been tabled since February 2025, leaving many leaseholders facing escalating payments and limited options to move.
For letting agents and inventory clerks, these findings underline the ongoing challenges in the leasehold sector, particularly regarding property marketability and the impact of service charges on sales and lettings. The report suggests that the current situation is affecting not only individual leaseholders but also the wider housing market.
Source: Mortgage Strategy