Propertymark has backed government plans to ban the sale of new leasehold flats, arguing the move could help address longstanding issues affecting homeowners across England and Wales.
Responding to a consultation launched by the Ministry of Housing, Communities and Local Government, the organisation said replacing leasehold with commonhold ownership would give flat owners greater control over the management of their buildings while removing costs such as ground rent.
Under the proposals, most newly built flats would no longer be sold on leasehold agreements. Instead, buyers would own their property through a commonhold structure, where residents collectively manage shared parts of the building.
Propertymark said reform is needed following years of concerns over service charges, lease terms and management arrangements linked to leasehold ownership.
Research previously carried out by the organisation found that 94% of leaseholders regretted purchasing a leasehold property, while 93% said they would not buy another leasehold home. Separately, 76% of property agents reported that leasehold flats are becoming harder to sell.
Propertymark said the proposed changes could improve the appeal of flats among first-time buyers, families and landlords, while also helping to reduce the number of leaseholders struggling to sell their homes.
However, the organisation warned that any transition away from leasehold would need to be managed carefully to avoid creating additional costs or disruption for existing homeowners.
Propertymark said it does not support requiring current leaseholders to convert to commonhold before selling their properties, arguing that mandatory conversion could place unnecessary financial pressure on households.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Consumers have faced years of uncertainty and frustration with leasehold properties, from escalating charges to difficulties selling their homes.
“A move to commonhold has the potential to create a fairer, more transparent system that gives homeowners greater control and confidence.
“It’s important, however, that existing leaseholders are protected during the transition and that buyers fully understand how commonhold will work in practice.”
Propertymark is also calling for stronger regulation of property and managing agents as part of the reforms, arguing that buyers will need clear advice as commonhold becomes more widely used.
The organisation said consumer education will be important, particularly as many buyers are unfamiliar with how commonhold ownership works and how it differs from leasehold.
To support the transition, Propertymark plans to provide training and guidance for agents covering ownership structures, exemptions, building management arrangements and homeowner responsibilities under commonhold.
The organisation said the reforms could help improve confidence in the flat sales market and support housing supply over the longer term.
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