Almost two-thirds of landlords (64%) think the government will be unable to deliver leasehold reform by the end of this parliament, according to new research from Landbay.
In March, the Labour government said it would ban the sale of new leasehold homes by the end of its term, in what ministers described as the end of a centuries-old “feudal system”. However, only 36% of landlords surveyed by Landbay thought that this was achievable.
Rob Stanton, sales and distribution director at Landbay (pictured above), commented: “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“While the intent to reform a system often seen as outdated is welcome, delivering such sweeping changes requires robust implementation.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.”
Angela Rayner was Housing Secretary and deputy Prime Minister before resigning last month after coming under scrutiny for failing to pay enough stamp duty on her Hove flat. She spearheaded Labour’s effort to reform the UK home ownership system and bring it more in line with the rest of the world.
Landbay polled landlords of approximately 3,000 properties throughout England and Wales.
Landlords in the north of England were the most positive- but still 55% of those surveyed said they thought the goal was unachievable.
Landlords in Wales were more pessimistic, with 75% saying they thought the reforms wouldn’t happen.
Those operating predominantly as individuals were less likely to say that the government’s goal was unachievable (58%) compared to those making use of limited company structures (65%).
When Landbay asked landlords what they disliked the most about leasehold tenure, more than half said service charges while one in seven mentioned poor infrastructure and neglect.
Some 14% pointed to difficulty remortgaging, with 7% highlighting the cost of ground rent.
Only 12% said they had no complaints about leasehold tenure.
Rob said the research highlighted the deep concerns landlords have about the current system.
“The government’s push for commonhold is a step in the right direction,’’ he said. “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.”
