Over three-quarters of estate agents have withdrawn at least one leasehold property from the market because it was effectively unsellable, according to new research from Propertymark. The trade body's findings indicate that more than 78% of agents have taken this step, while less than 1% reported that selling leasehold property has become easier in the past two years.
The report, drawing on responses from over 1,200 leaseholders and 200 Propertymark members, found that 93% of leaseholders would not purchase a leasehold property again. Additionally, 86% had experienced an increase in service charges over the last two years, and 89% found it difficult to challenge unfair charges.
For agents, service charges are a significant obstacle, with 74% identifying onerous charges as a major barrier to selling leasehold flats. Some Propertymark members reported annual charges increasing from £1,000-£2,000 to £3,000-£4,000. These higher charges can raise affordability concerns for buyers and, in some cases, affect mortgage eligibility. Delays in obtaining necessary information for transactions were also reported, with 40% of agents stating it can take over 15 days, sometimes several months.
Propertymark is urging the government to accelerate leasehold reform, arguing that existing homeowners require greater protection as the market transitions towards commonhold. The trade body also highlighted the ongoing impact of building safety defects on leasehold transactions, suggesting remediation in England could take between 17 and 33 years, depending on the number of buildings and remediation pace.