Spicerhaart Corporate Sales has called on the next government to prioritise leasehold reform in order to address problematic and delayed sales.
The appeal comes as Andy Burnham is expected to become prime minister within days.
Spicerhaart Corporate Sales – which manages property portfolios and distressed assets for major UK banks, building societies and lenders – said that leasehold properties (most of which are apartments) now account for more than half (54%) of the stock it manages.
The company said the current leasehold system is making it increasingly difficult to achieve timely sales. It cited a number of barriers to transactions, including shorter leases, rising costs of lease extensions, increasing ground rents and service charges, building safety requirements and delays obtaining essential management information from freeholders or management companies.
“As leases become shorter, properties become less attractive to buyers and mortgage lenders, while the cost of extending a lease can rise significantly,” the company said.
According to Spicerhaart, leasehold properties remain in possession for an average of more than 250 days – more than 100 days longer than freehold homes – and typically take around eight weeks longer to complete once an offer has been accepted.
The company pointed to the North of England as an area where the problem is particularly prevalent, and said the combination of delays and failed sales mean more leasehold properties are ultimately being sold at auction.
While acknowledging that recent leasehold legislation had been a positive step, Spicerhaart argues that further reform is needed, particularly to address longstanding issues affecting leaseholders and lenders.
David Miller, divisional sales director at Spicerhaart Corporate Sales, said: “There is a clear opportunity for the next prime minister to deliver meaningful change for thousands of leaseholders across the country – particularly in the North of England, where the current frontrunner [Andy Burnham] has an obvious focus.
“While recent reforms have been a positive step forward and gained cross-party support, the revolving door at Number 10 shouldn’t mean momentum is lost. Whoever takes over the top role must make leasehold reform a clear priority.”
