Nine out of ten tenants will not buy another property under this tenure, as campaigners warn it will remain a “life sentence” for those caught up in rising costs and complex rules.
Despite some legislative progress, 93% of landlords will not buy another leasehold property, a new Propertymark report in conjunction with the National Leasehold Campaign (NLC) and the Leasehold Knowledge Partnership (LKP) has revealed.
It found that 86% of landlords have seen an increase in service costs in the last two years and 89% say it is difficult to dispute unfair charges.
The report, Leasehold: Still a Life Sentence?, also revealed that 78% of real estate agents took a leasehold property off the market in the last two years because it was ‘unsellable’ and 74% say high service costs are a major barrier to selling apartments.
A situation where 90% of consumers regret their purchase cannot continue to exist, the report said.
Progress on reforms has been very slow, it said, leaving hundreds of thousands of renters stuck in their homes, with mounting payments they often find difficult to afford.
So far, only 10 out of 125 categories of Land Leases and Free Changes
2024 legislation passed, no further legislation introduced as of February 2025.
Propertymark chief executive Nathan Emerson: “The government is planning to ban joint tenancy, but this change will take time.
“While land tenure reform is needed, relying solely on universal land would leave thousands of existing landowners without tangible change for decades.
“Our evidence highlights the need to support existing homeowners during the transition.
“However, it is still important that the reforms bring meaningful and measurable change, creating a system that is good for future generations.”
NLC founder Katie Kendrick says: “Eight years on, this report makes one thing undeniable: hiring remains a life sentence.
“The NLC strongly supports its findings.
“Despite almost a decade of commitment, progress has been very slow, very limited, and easily diluted.
“As a result, many landlords are stuck – they can’t sell, they can’t move, and they face costs they can’t afford.
“This is not just a failure of landlords – it’s a failure of the housing market.
“The lack of implementation of lease reforms doesn’t just hurt individuals – it hurts availability and confidence in the market as a whole.
“The government’s desire to move to normal is welcome, but it cannot be used as a substitute for taking action now.”
“That change will take years, possibly decades, leaving hundreds of thousands of existing rental owners stuck in limbo.
“This report reinforces a simple but urgent truth: without immediate, targeted changes to existing renters, this crisis will continue – for individuals, for families, and for the wider housing system.”
LKP director Sebastian O’Kelly says: “Despite nearly a decade of promises, consultation and legislation, many landlords are still stuck in homes they can’t sell, facing rising service costs, unaffordable rents and rents that continue to hurt the market.
“This is no longer just a problem for landlords – it’s a problem for the housing market. The findings of this report are very important because they reflect not only the experience of landlords, but also those who are property professionals.
“Real estate agents have identified heavy service costs, rising taxes and short leases as the three biggest barriers to selling apartments, indicating that renting restricts mobility, reduces confidence and undermines the performance of the housing market.”
He says: “Employers cannot be expected to wait another decade before change.”
“Government must now accelerate the implementation of tenancy reforms, including measures to tackle excessive and unclear service charges, regulate managing agents, make approvals and lease extensions more accessible, and provide reasonable protection for existing tenancy holders.”
