Leaseholders across England face significant financial risks as campaigners call for urgent reforms to the leasehold system. The National Leasehold Campaign (NLC) warns that many leaseholders are caught in a precarious position, with a growing number of leases nearing critical thresholds that could lead to inflated costs or loss of value.

Leaseholders face a financial cliff edge

Government data reveals there are 4.8 million individual leases registered against over four million households in England during 2023–24. While the average lease length remaining is substantial at 480 years, more than 250,000 households hold leases at or below the 80-year mark, placing approximately 10% of leasehold homes in what the NLC describes as the “80-year danger zone.”

Kaite Kendrick, co-founder of the NLC, emphasises the urgency: “The 80-year trap is not theoretical, it is happening right now to hundreds of thousands. Leaseholders are being forced to gamble: act now and pay inflated costs, or wait and risk falling off a financial cliff edge. That is an impossible position to be in.” She stresses that current reform efforts are insufficient, stating, “The latest figures make clear that the trajectory of leasehold reform is not yet changing, and must do so urgently if they are going to end leasehold.”

Leasehold issues extend beyond London

Leasehold ownership is often perceived as a London-centric problem, but the data challenges this notion. In London, 39% of homes are leasehold, while in the North West, 30% of homes are leasehold, with 70% of those being houses rather than flats. This demonstrates that leasehold challenges affect families nationwide, not just in metropolitan areas.

Cath Williams, NLC co-founder, highlights the pervasive nature of the issue: “Leasehold continues to have a stranglehold over our housing market. People’s lives are on hold; their homes are effectively controlled by a system they cannot escape from.” She adds, “Until these reforms are fully delivered, nothing has fundamentally changed for leaseholders.”

Calls for immediate government action

The NLC is urging the government to take swift action by capping ground rents at £250 immediately, rather than waiting two years as currently planned. They also call for the abolition of marriage value and the removal of the 80-year leasehold cliff edge to protect existing leaseholders, not just future buyers. Accelerating the transition to commonhold—a system that offers greater ownership control—is another key demand.

Jo Darbyshire, co-founder of the NLC, stresses the human impact: “Leaseholders do not have the luxury of time. Every single day of delay more homes become unsellable, and more families are pushed closer to financial crisis. This is not just a policy issue, it is a national housing injustice hiding in plain sight. If the government is serious about ending this feudal system, then the pace, priority and direction of reform must change now. Leaseholders have waited long enough.”

Industry perspective on leasehold reform

Propertymark, an industry body, has welcomed the government’s plans to phase out leasehold flats but warns that existing leaseholders need proper protection throughout the transition. Their research indicates that 94% of leaseholders regret purchasing leasehold properties, and 76% of property agents report that leasehold flats are increasingly difficult to sell.

Timothy Douglas, head of policy and campaigns at Propertymark, notes: “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.” He adds, “It’s important, however, that existing leaseholders are protected during the transition and that buyers fully understand how commonhold will work in practice.”

What this means for landlords

For landlords, the ongoing leasehold reform debate signals potential changes in property management and sales strategies. The risk of leases falling below critical thresholds could affect property values and marketability, especially for leasehold flats. Landlords should stay informed about reforms such as ground rent caps and the shift towards commonhold to anticipate changes in lease terms and tenant relations.

Moreover, the call for accelerated reforms suggests that landlords may need to prepare for adjustments in lease agreements and possibly increased administrative responsibilities during the transition period. Understanding these developments will be crucial to managing risks and maintaining the attractiveness of leasehold properties.

Source: Based on reporting from Property118

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