Propertymark has backed Government plans to phase out the sale of new leasehold flats in England and Wales while warning that the success of the reforms will depend on tighter regulation, better consumer education and significant investment in the wider property system.
The professional body says the move towards commonhold ownership could help restore confidence in the flat sales market after years of growing frustration among leaseholders over escalating service charges, ground rents and difficulties selling their homes.
The comments come in response to the Ministry of Housing, Communities and Local Government’s consultation on banning leasehold for new flats as part of wider plans to make commonhold the default tenure model in England and Wales.
The Government’s proposed reforms would effectively mark the beginning of the end for the centuries-old leasehold system, long criticised by campaigners and ministers alike as outdated and unfair.
LIFE SENTENCE
Housing Secretary Angela Rayner has previously pledged to “bring the feudal leasehold system to an end”, while housing minister Matthew Pennycook recently described commonhold as the future of flat ownership.
Propertymark says there is clear evidence that confidence in leasehold properties has deteriorated sharply in recent years.
Research from its “Leasehold: A Life Sentence” report found that 94% of leaseholders regretted buying a leasehold property, while 93% said they would not purchase another leasehold home.
A more recent 2025 survey of Propertymark members found that 76% believe leasehold flats have become even harder to sell over the last two years.
The organisation supports the Government’s plans to include all categories of new flats within the proposed ban, including purpose-built apartment blocks, conversions and mixed-use developments.
However, it warns that the transition to commonhold must be carefully managed to avoid unintended consequences for existing leaseholders and the wider housing market.
Among its recommendations, Propertymark calls for mandatory regulation and licensing of property agents, greater investment in HM Land Registry, industry-wide education around commonhold governance and clearer guidance for mixed-use developments involving commercial tenants.
The body also warns against forcing existing leaseholders to convert to commonhold before selling, arguing that doing so could financially trap homeowners and further restrict market mobility.
CONFUSION AND FRUSTRATION
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “The current leasehold system often creates confusion, frustration and financial uncertainty for homeowners. Moving towards commonhold has the potential to modernise flat ownership and restore consumer confidence in the housing market.
“However, the UK Government must deliver the right reforms for existing leaseholders to provide confidence in the market, ensuring transparency over service charges and greater standards from property professionals involved.”
PRACTICAL AND PROPORTIONATE
He adds: “The transition must also be practical and proportionate. Existing leaseholders cannot be unfairly penalised, and the industry needs sufficient time, training and regulatory support to adapt successfully.
“Property professionals will be on the frontline of explaining these changes to buyers and sellers, which is why clear guidance, mandatory qualifications and robust regulation across the sector will be essential.”
Propertymark says it is already preparing updated qualifications, training courses and compliance guidance for members ahead of any legislative implementation.
