The government is facing fresh pressure to rethink its housing reform agenda after new research revealed record levels of satisfaction among leaseholders.
New findings from the English Housing Survey show that 93% of leaseholders living in flats are satisfied with their tenure, marking the first large-scale study of its kind carried out by the Ministry of Housing, Communities and Local Government. The results build on the department’s 2023 qualitative research, which found most leaseholders held either positive or neutral views about the system.
The Residential Freehold Association (RFA) says the findings cast doubt over the case for sweeping reforms proposed under the now former deputy prime minister and housing secretary Angela Rayner, warning ministers against pursuing what it describes as a potentially damaging shake-up of the sector.
Under the proposed Commonhold and Leasehold Reform Bill, the government plans to make significant changes to the leasehold system, including removing the contractual ground rent income received by professional freeholders, who are responsible for overseeing the maintenance, management and safety compliance of residential buildings.
The RFA argues the changes could leave some freeholders facing insolvency, creating uncertainty over who would assume responsibility for affected buildings. It says leaseholders could ultimately be required to take on the legal duties and liabilities associated with running their blocks, regardless of whether they support changes to the current system.
The Ministry of Housing’s impact assessment states that no formal work has been carried out, or is planned, to quantify what it describes as a “redistributive transfer of wealth” resulting from the reforms, despite freeholders remaining legally responsible for the condition and safety of buildings across England and Wales.
Separate economic analysis commissioned by the sector estimates that the proposals could remove around £18.7bn in ground rent investment value. According to the analysis, a large proportion of the financial benefit from the reforms would go to property investors in London and the South East, which together account for around 55% of the projected gains.
Natalie Chambers, director of the RFA, commented: “At long last, the government has actually asked leaseholders what they think about the leasehold tenure and the answer they have given shows significant and widespread satisfaction.
“We have been urging the government to consider careful pragmatic reforms which would deliver real benefits for leaseholders without destroying the tenure. The government now needs to listen to leaseholders and follow its own evidence.
“Abolishing a system which 93% of respondents are satisfied with and forcing people into an unknown and untested commonhold system could be one of the biggest own goals in the history of housing policy.”
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