Thousands of UK homeowners are facing extended sale times due to the complexities of selling leasehold properties. New data from corporate property sales firm Spicerhaart reveals an average 100-day delay, with leaseholds taking over 250 days to sell compared to their freehold counterparts. The company is urging the new Prime Minister to tackle these issues head-on.
Leasehold properties now account for 54% of Spicerhaart's managed stock, and the delays are attributed to a range of factors including shortening leases, escalating ground rents and service charges, building safety requirements, and difficulties in obtaining management information from freeholders or agents. These issues are particularly pronounced in the North of England, where prolonged delays are leading to an increase in leasehold properties being sold at auction.
David Miller, divisional sales director at Spicerhaart Corporate Sales, believes that with a new Prime Minister soon to take office, there is a unique opportunity for meaningful reform. He highlights recent legislation as a positive step but stresses the need for ongoing momentum despite any leadership transition. Miller's comments come as Andy Burnham is poised to become PM and focus on issues affecting the North of England.
Spicerhaart warns that these extended transaction times pose significant challenges for institutional investors and lenders, who are managing distressed assets and potentially impacting portfolio valuations and capital allocation strategies. The company maintains that comprehensive reform is necessary to address the long-standing issues affecting both leaseholders and financial institutions involved in the property market.
The issue of delayed sales adds further strain to the broader UK property market, where properties with shortening leases are becoming increasingly unappealing to potential buyers and mortgage lenders. As a result, homeowners face prohibitively expensive costs associated with extending their leases, creating a significant barrier to sale. Urgent reform is now demanded by Spicerhaart to alleviate these transaction delays.