Wednesday, 21 August 2019

Number of leasehold sales falls significantly in England and Wales

Number of leasehold sales falls significantly in England and Wales

THE Office of National Statistics (ONS) has released figures showing that the number of homes that were sold as leasehold went down significantly in 2018 in all regions of England and Wales,

Many different types of homes were included in the ONS statistics, including newly built properties, existing properties, all house types combined, detached, semi-detached, terraced houses and flats or maisonettes.

In England and Wales, 4.2 per cent of all new homes were sold as leasehold in 2018 — a drop from 13.3 per cent in 2017 — and 3,242 new houses and 41,686 existing homes were sold as leasehold.

The Greater Manchester area had the highest percentage of new homes sold as leasehold in 2018, and two-thirds of leasehold sales were in the North West — a continuation of historical trends.

In the North West, 21.8 per cent of all new homes were sold as leasehold in 2018. This was more than in any other area of England and Wales, but down from 58.5 per cent in 2017.

In a consultation paper titled “Tackling Unfair Practices in the Leasehold Market” the Ministry of Housing, Communities and Local Government (MHCLG) says: “The sale of new build leasehold houses in some areas of England is an accepted custom and practice — it is particularly common practice in parts of Cheshire, Greater Manchester, Lancashire and Merseyside.”

London had the second-highest percentage of homes sold as leasehold, with 15.9 per cent of new house sales being sold as leasehold. This was a relatively small drop from 2017.

Commenting on the results, Nigel Henretty, the head of ONS Housing Analysis, said: “The percentage of new houses sold as leasehold in England and Wales fell sharply last year.

“The North West of England remained the area where sales of new leasehold houses were most common, despite also having had a large reduction last year.

“The government’s announcements about potential changes to the leasehold system may have driven the decreases.”

Property

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