Propertymark welcomes leasehold ban proposal
Original Article Summary
The trade body is calling for stronger regulation of property and managing agents as part of new reforms
PropMatch Curated Analysis
Propertymark has backed government proposals to ban new leasehold flats and replace them with commonhold ownership, while warning that the transition must be carefully managed to avoid additional costs for existing leaseholders. The reform could materially affect the salability and investment appeal of leasehold flats.
Investor Relevance
Investors holding or acquiring leasehold flats face potential structural changes to asset type, resale liquidity, and management obligations. The shift to commonhold would remove ground rent income streams for freeholders, change building management dynamics, and could affect flat valuations during transition. The finding that 76% of agents already report leasehold flats becoming harder to sell is a direct liquidity warning for existing portfolios.
Original Source:
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