The overwhelming majority of landlords hope commonhold will show important to enhancements within the sector.
Nearly half of the landlords polled (46%) mentioned they have been hoping for decrease service prices beneath the brand new system. Extra particularly, simply over a fifth (21%) mentioned they have been trying ahead to higher maintained buildings and the chance to cost larger rents consequently.
Rob Stanton, gross sales and distribution director at Landbay, which performed the ballot, mentioned: “It’s clear the place landlord preferences lie: 9 in ten landlords imagine commonhold might slash service prices and ship blocks that truly keep in prime form.
“Practically half are banking on decrease payments, whereas one in 5 see better-maintained buildings unlocking larger rents and happier tenants. The Authorities has lit the fuse; now landlords need them to ship.”
A white paper revealed in March acknowledged the sale of recent leasehold flats could be banned and commonhold “reinvigorated” with a brand new authorized framework.
In March the federal government mentioned it will ban the sale of recent leasehold properties by the tip of this parliament, in what ministers described as the tip for a centuries-old “feudal system”.
The federal government says it desires to maneuver to a system of house possession that’s extra according to the remainder of the world, often called commonhold, the place owners personal a share of and have management over the buildings during which they stay.
Underneath the present leasehold system, third-party landlords often called freeholders personal the constructing and a leaseholder buys the precise to occupy a flat inside it for a hard and fast time interval.
Landbay requested landlords if there have been sensible causes that might stop them from embracing commonhold.
Nearly half talked about the specter of mismanagement by commonholders (49%) whereas an analogous quantity apprehensive about the necessity to safe 100% settlement amongst leaseholders (49%).
Greater than 1 / 4 (26%) have been apprehensive about their lack of liquidity and mentioned they wouldn’t have the money reserves. Simply over a fifth (22%) mentioned their present freeholder ran their property nicely.
Earlier polling from Landbay discovered that just about two-thirds of landlords (64%) don’t imagine the federal government might ship leasehold reform by the tip of this parliament.
