A poll carried out by Landbay of around 3,000 landlords in England and Wales found that only 38% of respondents felt it was possible for the government to ban the sale of leasehold property, as announced in March this year.
The government said it wanted to make commonhold the default form of ownership and published a white paper that said the sale of new leasehold flats would be abolished.
Rob Stanton, sales and distribution director at Landbay, said: “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 out there 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“While the intent to reform a system often seen as outdated is welcome, delivering such sweeping changes requires robust implementation.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.”
Landlords in the North of England were the most optimistic about the possibility of this, with 55% saying it was unachievable. Landlords in Wales were more sceptical, with 75% predicting it would not happen.
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As for individual landlords, 58% said the government would not fulfil its promise, compared to 65% of landlords operating in limited company structures who felt the same.
Irritating inefficiencies of leasehold
Landbay asked landlords what they liked least about leasehold tenure, and 53% said service charges. Some 14% said the poor infrastructure and neglect, while 14% said the difficulty around remortgaging. Around 7% said the cost of ground rent. Just 11% had no complaints about leasehold.
Stanton said: “Our research highlights the deep concerns over the leasehold system, with expensive service charges being landlords’ primary grievance, alongside issues like neglect and remortgaging challenges. The government’s push for commonhold is a step in the right direction.
“But the lack of confidence among landlords, particularly in Wales and among those making use of limited company structures, highlights the need for a clear, practical roadmap. Without robust policy execution, the transition risks stalling, leaving landlords and leaseholders in limbo.”
