Nearly two-thirds of landlords believe the government will fail to deliver on its pledge to abolish leasehold homes before the end of this Parliament, according to new research from buy-to-let lender Landbay.
The government announced in March that it would ban the sale of new leasehold homes by the next general election – a move ministers described as the end of England’s “feudal” property system.
But Landbay’s survey found 64% of landlords doubt the reforms can be implemented in time, with only 36% confident the government will meet its target.
Under the current leasehold structure, homeowners purchase the right to occupy a property for a set period, while the building itself is owned by a freeholder. The government’s proposed shift to commonhold ownership – where residents jointly own and manage their buildings – is intended to bring the UK more in line with international property norms.
TIMETABLE DOUBTS
A white paper published in March set out plans to ban the sale of new leasehold flats and “reinvigorate” commonhold through a new legal framework. However, political uncertainty and the complexity of reforming centuries of property law have raised doubts about the feasibility of the timetable.
Landbay’s research, which polled landlords controlling around 3,000 properties across England and Wales, found confidence varied by region.
Landlords in the North of England were the most optimistic, with 55% saying the target was unachievable, compared with 75% in Wales.
Individual landlords were slightly more positive than corporate investors, with 58% of sole owners expressing scepticism versus 65% of those operating through limited companies.
FRUSTRATING TIMES
When asked about their main frustrations with leasehold tenure, 53% cited high service charges as their biggest concern, followed by 14% who pointed to neglect or poor infrastructure, and another 14% who cited remortgaging difficulties.
Just 7% said ground rent costs were their primary issue, while 11% reported no complaints at all.
Rob Stanton, Sales and Distribution Director at Landbay, says: “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 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“While the intent to reform a system often seen as outdated is welcome, delivering such sweeping changes requires robust implementation.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.”
PRACTICAL ROADMAP
He adds that while the direction of reform is widely supported, “the lack of confidence among landlords, particularly in Wales and among those using Ltd company structures, highlights the need for a clear, practical roadmap.”
“Without robust policy execution,” Stanton says, “the transition risks stalling, leaving landlords and leaseholders in limbo.”
