Leasehold constructions are limiting upgrades and pushing landlords away from shopping for flats, analysis from Leaders Romans Group (LRG) reveals.

Some 46% of landlords with leasehold flats say their largest problem is coping with service expenses, coordinating communal repairs, or having no management over choices.

Over a 3rd of landlords (34%) actively keep away from letting flats due to leasehold-related points or the complexity of constructing administration constructions.

Allison Thompson, nationwide lettings managing director at LRG, mentioned: “Flats are a significant a part of the rental market, notably for first-time renters and younger professionals.

“However many landlords are actually telling us they merely can not meet expectations in these properties as a result of they don’t management the broader constructing. This isn’t about unwillingness. It’s about feasibility.

“Good landlords wish to enhance houses, however the leasehold construction typically prevents significant motion.

“Reform is crucial if we’re critical about elevating requirements and giving tenants the houses they anticipate.”

Leasehold restrictions are additionally affecting landlords’ potential to satisfy authorities power effectivity targets.

Half of landlords consider EPC guidelines ought to replicate whether or not leaseholders are legally capable of make the required upgrades.

This echoes considerations raised by Propertymark, which referred to as leasehold restrictions a major barrier to power compliance in its session response.