It’s safe to say a lot can happen in just 67 days. With the Labour party deep in turmoil, we saw the Makerfield MP make way for the Greater Manchester mayor to return to Westminster, win a one-horse leadership race and replace Sir Kier Starmer as the nation’s new Prime Minister.

While Andy Burham has been quick to put his own stamp on government, the real challenge now is the delicate balance between fresh ambition and the responsibility to deliver on commitments already made. One such commitment that must not be allowed to slip down the new PM’s agenda is leasehold reform.

It’s been on the political radar for a little while, with legislation introduced under the previous Conservative government. Then under Starmer, Labour made further reform a manifesto commitment, pushing for a fairer system built around commonhold and the end of exorbitant ground rent and service charges.

For those of us working on the frontline of the property market, where we continue to see the practical consequences of a framework that is making it harder to buy, sell and finance thousands of homes, there’s no doubt that the urgent progress is needed.

Assessing the impact

Through our work managing property portfolios and distressed assets for major UK banks and other lending institutions, we have a very clear vantage point. In fact, the number of leasehold properties coming into possession has continued to grow month on month – with apartments and flats making up the biggest proportion. We are at the point now where they account for more than half of the stock we manage.

It reflects the fact that leasehold properties are consistently proving more difficult to sell than their freehold counterparts. The reasons are rarely isolated. Instead, they compound one another.

As lease terms shorten, properties become less attractive to prospective buyers and mortgage lenders become increasingly cautious. Once a lease falls below certain thresholds, extending it becomes significantly more expensive, creating an additional financial burden for homeowners while dramatically reducing market appeal.

Meanwhile, buyers are becoming more aware of ever-increasing ground rents and service charges, as well as building safety requirements – all of which limit the ability of lenders to lend sustainably. Combined, these factors create significant barriers to transactions and leave many leasehold properties sitting on the market for far longer than they should.

Working on behalf of lenders, a particular bugbear of ours is the massive administrative burden – particularly the huge delays in obtaining management information from freeholders or unscrupulous management companies. These packs are essential for any sale to progress, yet they can take weeks or in most cases many months to arrive and come with their own escalating costs.

Consequences for lenders

For lenders managing distressed assets, these delays can have a very real commercial impact.

Not only do properties remain in possession for longer, but sale values end up affected as marketing periods extend. We have found that on average leasehold properties are in possession for over 250 days – more than 100 days longer than a freehold property, while sales take around eight weeks longer to complete once an offer is accepted.

The impact extends far beyond lenders. Longer transaction times affect borrowers hoping to move on from difficult financial circumstances, create uncertainty for buyers and reduce liquidity across local housing markets. We have seen firsthand real challenges in the North of England – specifically the North East – where there is a higher concentration of leasehold apartments. For the ‘King of the North’ and his newly launched No.10 North, this should be an urgent priority.

Delivering practical change

Reforming, or even replacing, leasehold tenure will not happen overnight – Matthew Pennycook, the housing minister retained by the new PM has said as much himself. We also know that the move towards commonhold requires careful consideration.

Too often, the debate focuses on legal structures or political arguments. From our perspective, it’s about creating a housing market that functions more efficiently for everyone involved. A simpler and more transparent leasehold system would help reduce delays, improve confidence among buyers and lenders and support better outcomes for customers facing already difficult circumstances.

The foundations for reform have already been laid. The challenge for the new Prime Minister is ensuring that momentum is not lost.

It’s not just about honouring an existing manifesto commitment. It’s about removing unnecessary friction from the housing market, supporting regional growth and improving outcomes for homeowners, lenders and prospective buyers alike.

For those of us working with these properties every day, the need for action is clear to see in every delayed sale, every abandoned transaction and every property that spends months longer in the system than it should.

David Miller is divisional sales director at Spicerhaart Corporate Sales