The latest research from Warwick Estates has revealed which regions of the property market in England and Wales are currently the leasehold homebuyer hotspots. Warwick Estates analysed price paid data from the Land Registry over the last 12 months to see where the most leasehold homes are selling. The figures
Comment from Warwick estates… COO of Warwick Estates, Bethan Griffiths, commented: “Whilst we welcome the government’s about turn on deeming 800,000 affected flats now safe, one wonders why it took four years for this to be ascertained. Meantime over £190billion worth of UK property assets has been held in limbo,
The latest research from Warwick Estates shows that leasehold homes are playing an increasingly significant role in the UK housing market after enjoying significant growth in the past couple of years. There is an increasingly common narrative around the housing market that leaseholds should be a thing of the past.
The latest research from Warwick Estates has revealed which regions of the property market in England and Wales are currently the leasehold homebuyer hotspots. Warwick Estates analysed price paid data from the Land Registry over the last 12 months to see where the most leasehold homes are selling. The figures show that across England and Wales, 651,488 homes have sold in the last 12 months, 117,892 of which have been leaseholds, accounting for 18% of all market activity. London continues to lead where leasehold property popularity is concerned. 44% of all homes sold across the capital in the last year have been leasehold, by far the highest proportion of all regions. However, the North West ranks second, where the 25,858 leasehold sales equate to 32% of all market activity. The South East completes the top three regions with the most leasehold homes sold, with 15% of all transactions in the last year being for leasehold properties. In contrast, just 6% of homes sold across the East Midlands in the last year have been leasehold, while Wales (8%) and the West Midlands (11%) are also home to some of the lowest leasehold homebuyers. COO of Warwick Estates, Bethan Griffiths, commented: “The leasehold lifestyle appeals to a certain type of homebuyer and so there will always be a large regional disparity where the proportion of market activity attributable to leasehold sales is concerned. They remain a popular choice in many larger cities where apartment living, in particular, is the lifestyle of choice for many. They also provide a more affordable option for those purchasing in inflated pockets of the market. However, we’re now seeing an increase in popularity due to the social and communal aspects that many leasehold developments offer. This has become an important feature for many since the nation was plunged into lockdown and will remain a prominent aspect of life after the pandemic.” Location All transactions Leasehold transactions Leasehold % London 69,265 30,683 44% North West 79,685 25,858 32% South East 118,696 18,234 15% South West 75,991 10,877 14% North East 27,305 3,791 14% Yorkshire and the Humber 60,108 7,493 12% East of England 77,030 8,932 12% West Midlands region 57,560 6,307 11% Wales 31,437 2,501 8% East Midlands 54,411 3,216 6% England 620,051 115,391 19% England and Wales 651,488 117,892 18% Data sourced from the Land Registry Price Paid data records for residential property sales, excluding properties listed by type as ‘other’, between August 2020 and July 2021.
Comment from Warwick estates… COO of Warwick Estates, Bethan Griffiths, commented: “Whilst we welcome the government’s about turn on deeming 800,000 affected flats now safe, one wonders why it took four years for this to be ascertained. Meantime over £190billion worth of UK property assets has been held in limbo, trapping owners into a seemingly unnecessary and protracted state of anxiety. Notwithstanding the relief of hundreds of thousands of leaseholders, hundreds of freehold apartment owners including asset managers and property investment houses can also now restore these assets to full value on their balance sheets Wiping out one-fifth of a trillion pounds in property value is equal to around 9.7% of GDP and was likely to be somewhat missed economically.”
The latest research from Warwick Estates shows that leasehold homes are playing an increasingly significant role in the UK housing market after enjoying significant growth in the past couple of years. There is an increasingly common narrative around the housing market that leaseholds should be a thing of the past. This argument often starts by saying leaseholds don’t give owners sufficient freedom and protection in their homes. But, from analysing the past five years of the UK leasehold market in the private sector, it’s clear that they aren’t going anywhere. In fact, they’re growing in prominence. The industry analysis by Warwick Estates shows that In 2015/16, leaseholds accounted for 20.8% of the private housing market. In 2017, this had slumped to an all-time low market share of 20.3% and it looked as though leaseholds were quickly becoming the least desirable form of homeownership. But the slump didn’t last long. In 2018/19, the leasehold sector’s market share increased to 21.1%, with the total number of leasehold dwellings increasing by 5.3% from just over 4 million to more than 4.2 million. This growth continued into 2019/20, with leaseholds now accounting for 21.6% of all private dwellings, having increased by 3.4% annually. So the idea that leasehold ownership is falling out of favour seems to be incorrect. Instead, after a few years of strife from 2015-2018, leaseholds are on the rise having risen by 8.15% across the five-year period examined in the data. COO of Warwick Estates, Bethan Griffiths, commented: “Leasehold prominence in the UK housing market is on the up and this should come as no surprise as the sector provides a vital service to many. Those who argue leaseholds are increasingly defunct fail to consider how essential they are for the housing market, for the economy, and for buyers. “Take a walk around any city; there are new developments and high rise flats going up everywhere. Those that are destined to be sold will be done so with leaseholds. For as long as people want to live in urban areas and in flats, leaseholds will provide the ability to secure and maintain this lifestyle choice. “That’s not to say leaseholds don’t come with challenges, but with intelligent and communication-focused management that caters to landlords and leaseholders alike, these challenges can be mitigated and nullified.“ Leasehold dwellings across the private sector (owner occupied and private rented sector) Period Leasehold dwellings as % of stock Change (%) TOTAL – number of leasehold dwellings Change (n) Annual Change (%) Change – 2015/16 to 2019/20 (%) 2019-20 21.6% 0.5% 4,378,000 146,000 3.4% 8.15% 2018-19 21.1% 0.8% 4,232,000 212,000 5.3% 2017-18 20.3% -0.2% 4,020,000 -1,000 0.0% 2016-17 20.5% -0.3% 4,021,000 -27,000 -0.7% 2015-16 20.8% – 4,048,000 – – Data sourced from Gov.uk – Leasehold Dwellings
