Leasehold stats
Cladding stats
Property agents play a key role in supporting home buyers and sellers, so it is positive to see that consumer awareness about leasehold information has increased. However, increasing awareness is only one piece of the puzzle.
Policymakers must do more to create a level playing field with those who already own a leasehold property, make enfranchisement easier, simplify the process for lease extensions and where there is no managing agent, freeholders must sign up to a redress scheme.
Furthermore, as with sales, lettings and managing agents, for developers, there are no minimum standards to work in the sector and there are no statutory rules to ensure those buying and selling leasehold property are suitably qualified. As highlighted by the findings in our report a whole sector approach is needed to further protect consumers and bring about positive change for leaseholders.
Leasehold training and resources
Download our leasehold FAQs (members only) or attend a training course to further understand leasehold legislation and what you need to do.
Understanding leasehold
This guide provides Propertymark estate agents with best practice on helping people buy and sell leasehold property. Estate agents have a level of responsibility under the Consumer Protection Regulations to pass on all material information in respect of a lease.
FAQs: Leasehold Reform (Ground Rent) Act 2022
The Leasehold Reform (Ground Rent) Act 2022 restricts ground rents on newly created long residential leases for single dwellings such as a flat or house to a token one peppercorn per year, effectively restricting ground rents to zero financial value.
FAQs: Leasehold Reform
On 7 January 2021, the UK Government announced reforms with the intention of making it easier and cheaper for leaseholders to buy their homes in England.
Leasehold: How to read leases
Navigate your way around leases to quickly find the answers to day-to-day questions which typically arise.
Leasehold: A Life Sentence
In September 2018, Propertymark’s report ‘Leasehold: A Life Sentence?’ unearthed some troubling statistics about the way leaseholders have been treated when purchasing their property.
As part of our campaign, we surveyed over 1,000 leaseholders to explore the extent of the scandal which has left thousands of people facing escalating ground rent, extortionate fees for making cosmetic alternations and the inability to sell their homes.
- 48% were unaware of escalating ground rents attached to their lease when they purchased the property.
- 60% of those leaseholders currently trying to sell their home report that they are struggling to sell because it is leasehold.
- 62% of leaseholders felt that they were mis-sold when they bought their home.
- 70% of leaseholders are worried that they will not be able to sell their homes because they are leasehold.
- 94% of leasehold homeowners regret buying a leasehold.
Campaign success
Leasehold Reform (Ground Rent) Act
Campaigning from Propertymark helped lead to the introduction of the Leasehold Reform (Ground Rent) Act in June 2022, ending ground rent for most new long residential leases granted for properties in England and Wales.
In 2018, Propertymark provided evidence to the House of Common’s Housing, Communities and Local Government Committee’s Leasehold reform inquiry and the UK Government’s consultation on
making the leasehold market fairer. We were a member of the Welsh Government’s Task and Finish Group set up to reform the leasehold sector. Its report which identified failings in the leasehold system was released in July 2019.
In 2021, Propertymark’s research as published in our Leasehold: A Life Sentence report was quoted in Parliament by Baroness Andrews during Second Reading of the Leasehold Reform (Ground Rent) Bill to highlight issues around ground rents and unreasonable service charges.
Leasehold changes take effect
The Leasehold Reform (Ground Rent) Act 2022 takes effect on 30 June 2022, ending ground rent for most new long residential leases granted for properties in England and Wales.
Campaign success
New Homes Ombudsman
After lobby for its introduction as part of our work on leasehold issues, the UK Government introduced a New Homes Ombudsman via the Building Safety Act 2022.
Propertymark put forward proposals for an ombudsman scheme for purchasers of new build homes and for all new house builders sign up to the Consumer Code for Home Builders in our research, Leasehold: A Life Sentence.
We also outlined our concerns and put our proposals forward to the House of Commons Housing Communities and Local Government Committee inquiry into leasehold reform and the UK Government’s call for evidence into improving the home buying and selling process.
Bringing new homes under the scope of an ombudsman allows for a level playing field across the entire house buying process and will ensure the selling activities that developers are engaging in are of a consistently high standard.
Ombudsman Service launches with Code for housing developers
Barratt, Taylor Wimpey, Redrow and Bellway are among 100 firms signed up to a new Code of Practice, following the launch of a new Ombudsman Service. The Code has been developed in response to growing pressure surrounding complaints from owners of new build housing that issues fail to be resolved effectively.
Related news
Updated plans on high-rise safety designed to reassure lenders
There is a confirmed route to remediation for all buildings over 11 metres in Wales, with ten major UK developers already lined up to complete fire safety works. Alongside new cladding valuation guidance expected from the Royal Institute of Chartered Surveyors (RICS), these plans demonstrate to valuers and lenders that essential work can be carried out at no cost to leaseholders.
Leasehold and Freehold Bill starts progress through UK Parliament
A ban on new leasehold houses and limits on ground rent for new flats are contained in the long-promised and eagerly awaited Bill, and for existing leaseholders, selling should be made quicker and easier.
Peppercorn rents are the only option to align new and existing leaseholders
A public consultation has opened on proposals to cap ground rents in England and Wales as the UK Government begins its latest action to reform the sector. Legislation is already in place in the Ground Rent Act 2022 to ensure that new residential leases are restricted to a peppercorn ground rent, and this new proposal sets out options to extend this protection to existing leaseholders.
Prominent brokers pledge to lower leaseholder premiums
Five multi-occupancy building insurance providers have agreed to act on concerns about the value and transparency of commission and commission sharing practices. They have promised to help reduce costs and improve disclosure for residential leaseholders in buildings with fire safety issues.
RAAC: what private sector agents need to know
School closures made headlines over the summer of 2023, but these are not the only buildings that could be affected by structural issues because of old or badly maintained materials. Property agents need to understand key facts relating to domestic and commercial buildings, especially those who deal with leaseholds.
Ground rent ban and renters reform feature in King's Speech
The UK Government has outlined its priorities for the months ahead at the State Opening of Parliament which includes a ban on new leasehold houses in England and Wales and the delivery of the much-discussed Renter’s (Reform) Bill.