Leaseholders Discouraged by Complex Redress Procedures

The Leasehold Advisory Service (LEASE) has warned that the existing leasehold redress system is deterring leaseholders from pursuing and resolving complaints. According to LEASE, many leaseholders find the process too time-consuming and stressful, which leads to disengagement and unresolved disputes.

This issue arises at a time when the government has announced plans to cap ground rents at £250 per year for older leases, signalling ongoing reforms in leasehold legislation.

Challenges in Navigating the Redress System

Martin Boyd, chair of LEASE, explained the difficulties leaseholders face: “While there are multiple routes to redress, we know that in practice, the system is difficult to navigate. This leaves many leaseholders feeling confused and unsupported at the point they most need clarity.”

He added, “Too often, leaseholders disengage because they can’t identify the right avenue quickly or the process feels uncertain and time-consuming.” Boyd emphasised the importance of sector-wide collaboration to improve clarity and ease of access to redress options, stating that LEASE will continue to engage with government for broader structural reforms.

Leaseholder Dissatisfaction and Escalation Rates

Data from the English Housing Survey reveals that 67% of leaseholders who complained about property management to their managing agent or landlord were unhappy with the response. Of those dissatisfied, 78% chose not to escalate their complaint further, highlighting a significant barrier to effective dispute resolution.

LEASE’s own survey identified key factors influencing leaseholders’ decisions to escalate issues: the likelihood of action being taken, potential impact on service charges, availability of guidance, and associated costs.

Improving Access to Information and Dispute Resolution

To address these challenges, LEASE plans to work with the sector to develop practical tools that simplify access to relevant property information and clarify routes to redress. This includes guidance on alternative dispute resolution methods and navigating courts and tribunals, aiming to make the complaint process more accessible and less daunting for leaseholders.

Industry Response and the Need for Balanced Redress

Sean Hooker, head of property redress, welcomed the LEASE report, noting the importance of the findings in identifying gaps and weaknesses in the current system. He said, “What is needed is a redress landscape that is fair to all. This includes not only long-suffering leaseholders, but also property managers who are trying to deliver a quality service in an increasingly challenging, complex and costly environment, as well as freeholders and landlords who, whilst often seen as holding the power in the relationship, need clear direction in order to invest in and improve the property stock they own.”

Hooker’s comments underscore the complexity of balancing the interests of all parties involved in leasehold property management and the importance of reform that supports both leaseholders and landlords.

What This Means for Landlords and Agents

For landlords and letting agents, the current hesitancy among leaseholders to escalate complaints may result in unresolved issues that could affect property management and tenant relations. Understanding the barriers leaseholders face can help landlords anticipate potential disputes and work proactively to provide clearer communication and support.

Engagement with ongoing reforms and collaboration with advisory services like LEASE will be crucial for landlords aiming to navigate the evolving leasehold landscape effectively.

Suggested internal link anchors

• leasehold redress system
• complaint escalation process
• ground rent cap
• leaseholder dissatisfaction
• alternative dispute resolution
• property management challenges
• leasehold reform
• service charges impact
• English Housing Survey
• dispute resolution guidance

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/