The Leasehold Trap – What Was The Point?

The BBC’s recent feature, The Leasehold Trap, examined the experiences of individuals living in leasehold properties, highlighting challenges such as service charges and management issues. With over 4.77 million leasehold properties in the UK, the program aimed to shed light on this widely debated aspect of the property market.

Our Director of Mixed-Use, Richard Lewis, viewed the program with interest, expecting an exploration of key issues such as the complexities of leasehold management, rising service charges, and the roles of managing agents and freeholders. Instead, the program focused on the personal stories of four individuals, which, while compelling, did not provide a comprehensive analysis of the sector’s broader challenges.

Leasehold arrangements often involve balancing multiple interests, and the program touched on concerns such as rising costs, property maintenance, and communication. However, it offered limited insight into protections available to leaseholders, the role of conveyancers in clarifying obligations during property transactions, or the challenges faced by those managing these properties.

One notable contribution was from Jaclyn Mangaroo of The Property Institute (TPI), who highlighted the need for improved regulation of property managers. This aligns with recent calls from the Housing Minister to include regulation as part of the Leasehold Reform Act. Such measures could help address some of the concerns raised by leaseholders, including service quality and transparency.

At the same time, it is important to acknowledge that the management of leasehold properties can be complex. Factors such as rising insurance and utility costs, aging buildings, and resource constraints within managing teams all contribute to the challenges faced. Effective collaboration between leaseholders, freeholders, and managing agents is key to ensuring properties are well-maintained and costs are apportioned.

In our work as asset managers, we focus on improving communication, customer satisfaction, and engagement between stakeholders. By reframing the relationship between freeholders and leaseholders as a partnership, where residents are viewed as valued customers, the sector can foster greater trust and mutual understanding.

While The Leasehold Trap highlighted important issues, it left room for further exploration of how all parties involved can work together to improve outcomes. With the right focus on transparency, regulation, and collaboration, the leasehold system can evolve to better meet the needs of those it serves.

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