Over a third of landlords are avoiding flats due to the leasehold pains that often accompany them, according to new research from LRG.
The firm’s most recent Lettings Report found that 58% of flats being let by landlords are leasehold.
Among this cohort, 46% of landlords say their biggest challenge is dealing with service charges.
Over 20% of landlords letting leasehold flats complain of difficulty in agreeing work with the freeholder which can lead to challenges around coordinating communal repairs.
These barriers are influencing investment decisions with now 34% of landlords saying they are avoiding leasehold flats as a result.
However, 36% will still consider leasehold flats while the remainder admit this does not influence their decision in any way.
This is impacting tenants, with only 39% of those surveyed saying they had confidence in how their building was managed.
“Many landlords are now telling us they simply cannot meet expectations in these properties because they do not control the wider building", said Allison Thompson, national lettings managing director at LRG.
“Good landlords want to improve homes, but the leasehold structure often prevents meaningful action.
“Reform is essential if we are serious about raising standards and giving tenants the homes they expect.”
