Propertymark calls for faster leasehold reform

Propertymark is urging the government to speed up leasehold reform after research found 93% of leaseholders would not buy another leasehold property.

Its survey of more than 1,200 leaseholders and 200 Propertymark members found 86% had seen service charges rise during the past two years.

Another 89% said challenging unfair service charges was difficult, while more than 78% of estate agents had removed at least one leasehold property from the market because it was unsellable.

Less than 1% of agents said selling leasehold property had become easier over the past two years, with 74% identifying onerous service charges as a major barrier to selling flats.

Leaseholders need action

Propertymark’s head of policy and campaigns, Timothy Douglas, said: “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.”

He added: “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 block sales

Propertymark members reported annual service charges rising from around £1,000 to £2,000 to between £3,000 and £4,000, creating affordability concerns and issues with getting remortgaged.

Delays can start before a sale is agreed, with 40% of members saying leasehold information can take more than 15 days, and sometimes months, to obtain.

Only 17% said they typically received the information within one to five days.

One leaseholder, Stacey, bought a new-build flat in the North West for £150,000 in 2009 but later accepted five offers over eight years, with four sales falling through between 2018 and 2022 because of cladding, building safety and ground rent issues.

Flats remain difficult to sell

When Stacey put the flat back on the market in 2024, she priced it at £130,000, £20,000 below what she had paid 15 years earlier, despite Propertymark estimating North West property prices rose by 85% between March 2009 and March 2026.

She said: “I wish I had known 18 years ago what I know now.

“We’re stuck, we can’t sell it, we can’t move out because we cannot afford two mortgages.”

Propertymark also estimates that remediation of affected flats in England could take between 17 and 33 years, depending on the number of buildings requiring work and the rate at which it is completed.

The organisation wants the proposed 40-year transition for reducing ground rents to a peppercorn brought forward, alongside standardised leases, stronger redress over service charges and an online database of lease terms.

It is also calling for simpler building safety remediation rules, clearer responsibility for costs and consideration of financial support for leaseholders seeking to buy their freehold and move towards commonhold.