Landlords doubt government’s ability to deliver leasehold reform

Nearly two-thirds of landlords believe the government will fail to deliver its promise to abolish leasehold before the next election, research reveals.

According to Landbay, 64% of landlords think ministers will be unable to meet their target of ending the sale of new leasehold homes by the end of this Parliament.

The government announced the move in March, describing it as the beginning of the end for what it called a ‘feudal system’ of home ownership.

However, only 36% of landlords surveyed said they thought such a reform was achievable.

Modernising property ownership

The lender’s sales and distribution director, Rob Stanton, said: “The government’s ambition to abolish leasehold and transition to commonhold is a bold step towards modernising property ownership in the UK.

“Our research highlights the deep concerns over the leasehold system, with expensive service charges being landlords’ primary grievance, alongside issues like neglect and remortgaging challenges.”

He added: “The government’s push for commonhold is a step in the right direction.

“But the lack of confidence among landlords, particularly in Wales and among those making use of limited company structures, highlights the need for a clear, practical roadmap.”

Switch to commonhold

Ministers want to replace the current leasehold system with commonhold, giving homeowners collective control and ownership of their building.

A white paper published earlier this year pledged to ban new leasehold flats and ‘reinvigorate’ commonhold through a new legal framework.

The survey covered landlords owning around 3,000 properties across England and Wales and regional differences were stark.

In the north of England, 55% said the target was unachievable, while in Wales that figure rose to 75%.

Leasehold scepticism is strong

Landlords operating through limited company structures were also more pessimistic, with 65% saying the government would not succeed, compared to 58% of individual landlords.

When asked what they most disliked about leasehold, more than half (53%) pointed to high service charges.

One in seven highlighted neglect and poor infrastructure (14%), and the same proportion mentioned remortgaging difficulties.

While 7% highlighted ground rent costs, only 11% said they had no complaints at all.