Nine out of 10 leaseholders would not buy another property under this lease, with campaigners warning it remains a “life sentence” for those trapped by rising costs and complex regulations.
Despite some legislative progress, 93% of leaseholders would not buy another leasehold property, according to a new report from Propertymark in collaboration with the National Leasehold Campaign (NLC) and Leasehold Knowledge Partnership (LKP).
It found that 86% of tenants have seen service charges increase over the past two years and 89% say it is difficult to challenge unfair charges.
From the report Leasehold: Still a Life Sentence? also shows that 78% of estate agents have taken a leasehold property off the market in the past two years because it was ‘unsellable’, and 74% say that high service charges are the main barrier to apartment sales.
A status quo where 90% of buyers regret their purchase cannot continue, the report said.
Progress in implementing reforms has been too slow, the report says, leaving hundreds of thousands of leaseholders trapped in their own homes, with rising payments that they often struggle to afford.
To date, only 10 of the 125 sections of the leasehold and property reform
Act 2024 has been passed and no further regulations have been submitted since February 2025.
Propertymark chief Nathan Emerson said: “The government plans to replace leasehold with common land, but the transition will take time.
“While leasehold reform is needed, relying solely on the commons could leave thousands of existing leaseholders without meaningful change for decades.
“Our evidence highlights the need to support current tenants during the transition.
“However, it remains essential that reforms deliver meaningful and measurable change, creating a system that is fit for future generations.”
NLC co-founder Katie Kendrick said: “Eight years later, this report makes one thing undeniable: leasehold remains a life sentence.
“The NLC strongly supports its findings.
“Despite nearly a decade of commitments, progress has been too slow, too limited and too easily diluted.
“As a result, too many leaseholders are left trapped – unable to sell, unable to move, and facing costs they cannot afford.
“This isn’t just a failure for renters – it’s a failure of the housing market.
“The lack of implementation of leasehold reform is not just hurting individuals – it is actively stifling supply and confidence in the market.
“The government’s ambition to move to commonhold is welcome, but cannot be used as a substitute for action now.
“That transition will take years, possibly decades, leaving hundreds of thousands of existing leaseholders in limbo.
“This report reinforces a simple but urgent truth: without immediate, targeted reforms for existing tenants, the crisis will continue – for individuals, for families and for the wider housing system.”
LKP director Sebastian O’Kelly said: “Despite almost a decade of promises, consultation and legislation, too many leaseholders remain trapped in homes they cannot sell. They face escalating service charges, unaffordable lease extension costs and ground rents that continue to devastate the market.
“This is no longer just a renter crisis – it’s a housing market crisis. The report’s findings are particularly important because they reflect not just the experiences of renters, but also those of real estate professionals.
“Agents identified heavy service charges, rising leasehold prices and short leases as the three biggest barriers to apartment sales, showing that leaseholds actively restrict mobility, reduce confidence and undermine the functioning of the housing market.”
He says: “Tenants cannot be expected to wait another decade for change.
“The government must now accelerate the implementation of leasehold reform, including measures to tackle excessive and opaque service charges, regulate property managers, make voting rights and lease renewals more affordable, and provide meaningful protection for existing leaseholders.”