Leasehold homes now make up almost a third of properties for sale in England, increasing the complexity of ownership and driving greater reliance on professional property management, new research suggests.
Analysis by Rushbrook & Rathbone found that 32.4% of all homes currently listed across England are leasehold, with the proportion rising sharply in some regions and dominating the market in London.
The study looked at current listings nationwide and compared the balance of freehold and leasehold stock, while also identifying how many properties have fewer than 80 years remaining on the lease – a key threshold affecting value and mortgage availability.
In London, leasehold accounts for 64.3% of all homes for sale, while the split is almost even in the North West at 48.3%. Significant levels are also seen in the South East (27.9%), East of England (23.7%) and South West (20.8%). Even in the East Midlands, where the figure is lowest, leasehold still represents more than one in ten listings.
LEGAL OBLIGATIONS
Unlike freehold homes, leasehold properties come with additional legal obligations, restrictions on letting and maintenance responsibilities set out in the lease, meaning landlords must comply not only with rental legislation but also with the terms of the building agreement.
The research also identified at least 1,445 homes currently on the market with short leases of under 80 years, with the highest concentrations in the South East, London and the East of England – a situation that can affect lending, resale value and long-term investment performance.
LANDLORD RESPSONSIBILITY
Susan Feasey, Associate Director, Block Management at Rushbrook & Rathbone, says: “Leasehold property introduces a level of complexity that simply doesn’t exist with freehold ownership.
“Leasehold properties introduce an additional layer of responsibility for landlords, as they are not only managing the tenancy, but also operating within the conditions of a lease.
“This means understanding what is and isn’t permitted, coordinating with block management, and ensuring that both regulatory and lease obligations are met.”
LEASE LENGTH
And she adds: “It’s also important to recognise the impact that lease length can have on the value of a property. As a lease begins to shorten, particularly as it approaches the 80-year threshold, the cost of extending it can rise significantly, and this can have a direct impact on both mortgageability and resale value.
“What we’re seeing is a market where a significant proportion of property requires a more hands-on, structured approach to management.
“As a result, professional property management is increasingly being viewed not as an optional service, but as an important part of protecting both the value of the asset and the long-term performance of an investment.”
