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Is more leasehold coming our way?

Written by: Maryanne Bowring 13/11/2020
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Is Leasehold Property Taking Over in UK Towns and Cities?

  • A survey by My Home Move indicates that leasehold properties are rapidly increasing, particularly in urban areas. New build flats in cities like London, Manchester, Liverpool, and Birmingham are becoming more common, with leasehold now accounting for a significant portion of the housing stock.

The Growing Prevalence of Leasehold Properties in Key Urban Locations

  • In areas such as central London and redeveloped districts in cities like Manchester and Birmingham, leasehold properties now dominate. The survey notes that leasehold accounts for more than 60% of property in central London’s WC, EC, and W postcodes, with similar trends observed across other cities.

More Leasehold Homes Could Lead to More Property Management Jobs

  • As more people opt for apartment living, the demand for property managers is expected to grow. With an increase in leasehold properties, the need for qualified and regulated managing agents will rise, creating more job opportunities in the property management industry.

Potential Challenges: Absentee Owners and Rising Service Charges

  • With the shift toward leasehold properties, concerns arise about absentee freeholders and the maintenance of buildings. There is a call for legislation requiring reserve funds to ensure buildings don’t fall into disrepair and to protect residents from significant hikes in servicechargesorted.co.uk/blogs/service-charge-disputes-what-cam-be-disputed-how-and-the-role-of-the-first-role-planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal'>service charges for major works.

Leasehold Reform and the Shift to Commonhold: What It Means for Flat Owners

  • As the UK government considers moving toward commonhold tenure, flat owners could face increased responsibilities for maintaining their buildings. This shift could create more opportunities for property managers, but it may also lead to resistance from residents who prefer to self-manage their buildings without paying for professional services.

The Scarcity of Freehold Homes Could Push Prices Even Higher

  • As freehold properties become scarcer, they may see a price premium, making them less accessible to homebuyers. This could lead to a more skewed property market, with planners needing to ensure that in their efforts to meet housing demands, they don’t push freehold properties further out of reach for prospective buyers.




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