RFA response to reports in The Times stating that leasehold reforms could boost property prices by 10%

In November 2023, Jack Spearman, the RFA’s Head of Leasehold, wrote to The Times arguing the Government’s leasehold reform agenda will transfer billions of pounds from freehold investors, predominantly pension holders, charities and other institutions, to wealthy property owners, many of whom are located offshore. The letter can be read here.

Sir, You report (Nov 20) on the “boost” to house prices that would result from Michael Gove’s leasehold reform agenda and the billions of pounds that would be taken away from freehold investors who are predominantly pension holders, charities and other institutions. Your piece overlooks two problems: short leases account for just over 10 per cent of all leasehold properties, and the lion’s share of those are located in (in value terms) in London. Hence, who exactly is Gove helping? The answer is the wealthiest property owners in London, many of whom will be offshore. The remaining 90 per cent of leaseholders will face on average a £6,000 cost (rather than a boost) as a result of these reforms.