Flats depreciating and ‘complex’ conveyancing rising amid leasehold worries, analysis suggests
Summary
An analysis of HM Land Registry data suggests leasehold flats and maisonettes are the only UK property type showing negative price growth, while freehold houses and other house types continue to rise. The article links this divergence to leasehold reform delays, Building Safety Act compliance issues, ground rent terms, service charges, cladding liabilities and tighter lending criteria, which are making flat transactions more difficult.
Why it matters
Residential surveyors are likely to encounter increased scrutiny of leasehold flats where legal, safety and mortgageability issues affect value and marketability. The findings reinforce the need to identify and report on leasehold risks, service charge burdens and building safety matters that may influence valuation and saleability.
Key points
- HM Land Registry data shows flats and maisonettes recording negative year-on-year growth.
- Freehold houses, terraced houses and detached homes are all reported as rising in value.
- Leasehold reform delays and Building Safety Act compliance are cited as key pressures on flat transactions.
- Lenders are said to be scrutinising ground rent terms and mortgagee protection clauses more closely.
- Unresolved cladding liabilities and service charge concerns are contributing to reduced mortgageability.
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