Property agents' membership body, Propertymark, has brought attention to persistent challenges in the buying and selling of leasehold properties in its latest report.

Five years after Propertymark's publication titled "Leasehold: A Life Sentence," and subsequent to the implementation of the Leasehold Reform (Ground Rent) Act 2022, the agency conducted an examination to determine if any significant changes had occurred.

Based on a survey of its members, Propertymark compiled a new report titled "Leasehold 2023: Has Anything Changed?"According to the report, since the legislation came into effect, there has been an increase in consumer awareness regarding leasehold issues. However, this heightened awareness has also resulted in difficulties when selling leasehold properties.

The survey findings indicate that 72% of agents believe homebuyers are now more aware of leasehold property issues, and 60% of prospective buyers request lease information before viewing a property. Interestingly, 78% of agents agree that properties with an escalating ground rent clause are challenging to sell, even if they are priced correctly. Furthermore, 54% of agents selling property on behalf of developers report that developers do not always provide the necessary leasehold information.

Although the Leasehold Reform (Ground Rent) Act 2022 restricts ground rents to zero for newly created long residential leases, the report highlights that the reforms introduced since 2018 have not fully resolved the issue.

The report coincides with an announcement made earlier this year by Michael Gove, Secretary of State for Levelling Up, Housing and Communities, who expressed plans to abolish the UK's leasehold system, which he referred to as "outdated feudal." According to the report, 42% of agents support the abolition of leasehold, while 16% remain undecided.

Timothy Douglas, head of policy and campaigns, commented on the report, stating that increased consumer awareness is positive but not sufficient. Douglas calls for policymakers to establish a level playing field for existing leasehold property owners, simplify the enfranchisement and lease extension processes, and ensure that freeholders without managing agents participate in a redress scheme. He also raises concerns about the absence of minimum standards and statutory rules for developers involved in the sector.

Based on the report's findings, Propertymark advocates for a comprehensive approach to protect consumers and bring about positive change for leaseholders. Collaboration among policymakers, industry stakeholders, and professionals is crucial to address the complexities of the leasehold market and safeguard the interests of those involved.