Leasehold buildings are limiting upgrades and pushing landlords away from shopping for flats, analysis from Leaders Romans Group (LRG) reveals.
Some 46% of landlords with leasehold flats say their greatest problem is coping with service prices, coordinating communal repairs, or having no management over choices.
Over a 3rd of landlords (34%) actively keep away from letting flats due to leasehold-related points or the complexity of constructing administration buildings.
Allison Thompson, nationwide lettings managing director at LRG, stated: “Flats are an important a part of the rental market, significantly for first-time renters and younger professionals.
“However many landlords at the moment are telling us they merely can’t meet expectations in these properties as a result of they don’t management the broader constructing. This isn’t about unwillingness. It’s about feasibility.
“Good landlords wish to enhance properties, however the leasehold construction typically prevents significant motion.
“Reform is crucial if we’re severe about elevating requirements and giving tenants the properties they anticipate.”
Leasehold restrictions are additionally affecting landlords’ skill to fulfill authorities vitality effectivity targets.
Half of landlords consider EPC guidelines ought to mirror whether or not leaseholders are legally capable of make the required upgrades.
This echoes considerations raised by Propertymark, which referred to as leasehold restrictions a major barrier to vitality compliance in its session response.
