The next prime minister is being pressed to make leasehold reform a top priority, as new data reveals significant delays in the sale of leased properties. Spicerhaart Corporate Sales, a firm managing property portfolios for major UK lenders, reports that leasehold homes are taking an average of eight weeks longer to complete once an offer has been accepted, compared to their freehold counterparts.
According to the company, leasehold properties now constitute over half (54%) of the stock it manages. The current system is creating substantial barriers to timely transactions, with issues such as increasingly short leases, escalating costs for lease extensions, and rising ground rents and service charges being cited as key problems. Furthermore, delays in obtaining essential management information from freeholders or management companies are adding to the complications.
The extended sales process means leasehold properties remain in possession for an average of more than 250 days, which is over 100 days longer than freehold homes. This prolonged period, combined with failed sales, is leading to a growing number of leasehold properties ultimately being sold at auction, particularly in the North of England where the issue is said to be especially prevalent.
David Miller, divisional sales director at Spicerhaart Corporate Sales, emphasised the urgent need for action. He stated that while recent leasehold legislation was a positive step, further reforms are crucial to address long-standing issues affecting leaseholders and lenders. Miller highlighted a clear opportunity for the incoming Prime Minister, Andy Burnham, to deliver meaningful change, especially given his focus on regions like the North of England.
The call for reform comes amid expectations that Andy Burnham will soon assume the role of Prime Minister. Industry voices are keen to ensure that the change in leadership does not result in a loss of momentum for leasehold reform, stressing that the next government must make this a clear priority to support thousands of leaseholders across the country and stabilise the property market.