Almost two-thirds of landlords (64%) doubt the government will deliver on its promised leasehold reforms before the end of this parliament, according to new research from Landbay.
In March, ministers pledged to ban the sale of new leasehold homes, calling it the end of a centuries-old “feudal system.” Yet when asked if this target was achievable, just 36% of landlords said they thought it was.
Currently, leasehold properties are owned by third-party freeholders, with leaseholders buying the right to occupy a flat for a fixed period. The government plans to replace this system with commonhold, under which homeowners collectively own and control the buildings they live in — a model more in line with international norms.
A white paper published in March confirmed the ban on new leasehold sales and promised to “reinvigorate” commonhold with a new legal framework, but landlords remain unconvinced that the reforms will be implemented on time.
Rob Stanton, sales and distribution director at Landbay, said: “The government’s ambition to abolish leasehold and transition to commonhold is a bold step towards modernising property ownership in the UK. But our research suggests there is a lot of scepticism out there among landlords, with nearly two-thirds doubting it can be achieved by the end of this parliament.
“While the intent to reform a system often seen as outdated is welcome, delivering such sweeping changes requires robust implementation. With the political demise of Angela Rayner, the abolishing of leasehold tenure is beginning to look less certain.”
Landbay’s research polled the views of landlords owning approximately 3,000 properties throughout England and Wales.
Landlords in the north of England were the most positive, with just over half – 55% – of those surveyed saying they thought the goal was unachievable. Landlords in Wales were more pessimistic, with 75% saying they thought the reforms wouldn’t happen.
Landlords operating predominantly as individuals were less likely to say that the government’s goal was unachievable (58%) compared to those making use of Ltd company structures (65%).
When Landbay asked landlords what they disliked the most about leasehold tenure, 53% said service charges while one in seven (14%) said poor infrastructure and neglect. A similar number (14%) said difficulty remortgaging. One in 14 said the cost of ground rent (7%). Only one in nine (11%) said they had no complaints about leasehold tenure.
Stanton said: “Our research highlights the deep concerns over the leasehold system, with expensive service charges being landlords’ primary grievance, alongside issues like neglect and remortgaging challenges.
“The government’s push for commonhold is a step in the right direction. But the lack of confidence among landlords, particularly in Wales and among those making use of Ltd company structures, highlights the need for a clear, practical roadmap. Without robust policy execution, the transition risks stalling, leaving landlords and leaseholders in limbo.”
Read the orginal article: https://propertyindustryeye.com/two-thirds-of-landlords-doubt-government-will-deliver-leasehold-reform-this-parliament/
