The government’s leasehold reform agenda is facing renewed scrutiny following the publication of new data from the English Housing Survey showing 93% of leaseholders living in flats are satisfied with their tenure.
The findings represent the first large-scale quantitative study of leaseholder satisfaction carried out by the Ministry of Housing, Communities and Local Government. The results follow the department’s 2023 qualitative research, which found most leaseholders held either positive or neutral views about the leasehold system.
Proposed reforms under review
The Residential Freehold Association (RFA) has cited the satisfaction data in calling for a reconsideration of the Commonhold and Leasehold Reform Bill. The proposed legislation would introduce significant changes to the leasehold system, including the removal of contractual ground rent income received by professional freeholders who oversee maintenance, management and safety compliance of residential buildings.
The RFA has warned that the changes could result in some freeholders facing insolvency, creating uncertainty over responsibility for affected buildings. The organisation argues leaseholders could be required to assume legal duties and liabilities for managing their blocks, regardless of their views on the current system.
Financial impact estimates
According to the Ministry of Housing’s impact assessment, no formal work has been carried out or is planned to quantify what it describes as a “redistributive transfer of wealth” resulting from the reforms, despite freeholders retaining legal responsibility for building condition and safety across England and Wales.
Separate economic analysis commissioned by the sector estimates the proposals could remove approximately £18.7 billion in ground rent investment value. The analysis suggests a large proportion of financial benefits would accrue to property investors in London and the South East, which account for around 55% of projected gains.
Natalie Chambers, director of the RFA, said: “At long last, the government has actually asked leaseholders what they think about the leasehold tenure and the answer they have given shows significant and widespread satisfaction.”
She added: “Abolishing a system which 93% of respondents are satisfied with and forcing people into an unknown and untested commonhold system could be one of the biggest own goals in the history of housing policy.”
The debate over leasehold reform continues as the sector awaits further clarity on the government’s legislative timeline. Recent developments in lease extension financing and broader changes to the residential property sector suggest ongoing evolution in property tenure arrangements across the UK market.
