Top UK Property Stats: Freehold & Leasehold Edition

As we hit 2026, a few key property trends are becoming pretty clear, with the big shift being a change in demand for freehold homes – largely driven by changes in the rules around leasehold properties, plus a growing push for more transparency in property deals.

For people buying property, these numbers give you a real insight into what’s going on in the market – which should help you make an informed decision when it comes to what type of property you want to buy. And for sellers and investors, getting a handle on these trends is key to spotting opportunities in this ever-changing market.

This article is all about freehold and leasehold properties – we’ll take a closer look at the latest trends and stats to get a better understanding of how they’re impacting the UK property market in 2024.

A Quick Look at UK Property Market Trends

The UK property market is like the rest of the economy, with changing economic conditions, buyer preferences shifting and a host of new developments in the housing supply – all of which is contributing to a steady-ish growth in house prices.

This is, of course, influenced by things like varying interest rates, government housing policies and a growing demand for affordable homes. Buyers are looking for stability, while investors are being cautious but still hopeful that the market can hold up against the current economic challenges.

The 2024 UK House Price Index summary says:

• Average house price inflation in the UK went up to 2.7% over the 12 months up to June 2024.
• The average UK house price in June 2024 is £288,000 – a provisional estimate.
• That’s £8,000 higher than 12 months ago.
• Compared to 2023, here’s where the average house prices went up over the 12 months to June 2024:
  • Up 2.4% in England to £305,000.
  • Up 1.8% in Wales to £216,000.
  • Up 4.3% in Scotland to £192,000.
  • Up 6.4% in Northern Ireland to £185,000.

‘Annual UK house price change by country over the past 5 years’, UK House Price Index, 2024

Freehold Property Stats

• Back in 2022, about half the freeholders of flats were either Limited companies, owned by leaseholders or by someone completely unconnected. (GOV.UK)
• Other types of freeholders in the UK included private individuals (18%), housing associations (15%) and local authorities (14%). (GOV.UK)
• And only 4% were other organisations, like churches or charities. (GOV.UK)
• In 2017, the most freehold properties were sold in Leeds, with 9,841 sales. (ONS, via EvolutionProperties)
  • Birmingham was second with 8,752 freehold properties.
  • Cornwall was third with 8,726 freehold properties.
  • County Durham was fourth with 7,255 freehold property sales.

‘Freehold ownership of leasehold flats’, GOV.UK, 2021-22

Leasehold Property Stats

• We’re talking about 4.98 million leasehold homes in England, of which 70% are flats and 30% are houses. (House of Commons)
• About 94% of owner-occupied flats and 71% of privately rented flats are leasehold in the private sector. (House of Commons)
• And around 8% of houses in England are leasehold. (House of Commons)
• Out of 207,000 transactions in 2022, 24% were leasehold. (House of Commons)
• Almost all flats are sold on a leasehold basis compared to 7% of houses. (House of Commons)
• The proportion of new-build houses sold as leasehold rose from 7% in 1995 to a peak of 15% in 2016, but then dropped all the way down to less than 1% by December 2022. (House of Commons)
• Leasehold properties account for around half the sales in London and over four fifths (85%) of sales in Prime Central London. (SERC)
• Very short leases imply a discount rate of about 5-6%, whereas long leases close to 100 years left, imply a discount rate of between 3-4%. (SERC)
• At around 60 years, discount rates actually flatten or even start going up. (SERC)* More than a third of freehold flats have a lease term longer than 945 years. (SERC)
• Service charges in London are notably higher than elsewhere in the country, and leaseholders there are often contributing to a reserve fund to cover repairs and maintenance costs.

‘Annual service charges of London vs rest of England’, House of Commons, 2024 (a recent report from the HoC)

Impact of Recent Legislation on Shared Property Ownership

The UK property market remains very much affected by recent legislative changes aimed at improving transparency and fairness in leasehold arrangements. One of the key drivers behind these changes is the growing push for leasehold reform, which is slowly introducing new measures to make leasehold ownership more equitable and appealing.

One of the most significant measures to have been introduced so far is the abolition of escalating ground rents in new-build leasehold properties, which came into effect in 2022 under the Leasehold Reform (Ground Rent) Act. This legislation effectively gets rid of the practice of increasing ground rents for future leasehold agreements, which had long been a major financial burden for leaseholders.

This change is already having a positive impact, as prospective buyers of new-build leasehold properties are no longer having to factor in the uncertainty of rising ground rents – making leasehold ownership a more attractive option for some buyers.

The government has also stated its commitment to simplifying the collective enfranchisement process, which is the process by which leaseholders can collectively purchase the freehold of their property. Under the proposed changes, buying out the freeholder is expected to become more streamlined and cost-effective, with potential caps on the costs of enfranchisement.

This move aims to grant greater control to leaseholders – particularly those in shared residential blocks – and promote more collaborative ownership models. However, this could also lead to a gradual shift away from leasehold transactions as collective freehold ownership becomes more accessible.

Get the Inside Track on Freeholder and Leaseholder Insights

The latest UK property statistics provide some valuable insights into the evolving dynamics of freehold and leasehold properties – and what they mean for buyers and investors.

For Freeholders:

Freehold properties have traditionally been regarded as the gold standard in property ownership, thanks to the complete control they offer over both the building and the land it sits on. And with leasehold reforms ongoing, it’s no surprise to see a growing demand for freehold homes.

For buyers, this translates into increased long-term value and ownership freedom – because freehold properties do not come with all the restrictions or fees that are often associated with leasehold arrangements, such as ground rent or service charges.

In regions like Leeds and Birmingham, freehold properties are in high demand – and with transaction volumes high, this suggests that freehold homes in these areas will likely see growth in value over time, making them an attractive option for buyers looking for a stable long-term investment.

So what should I look for in a freehold property? Think about looking for properties in areas with high freehold transaction volumes – these may offer better investment potential. And don’t underestimate the potential for capital growth in areas like Leeds and Birmingham, where freehold demand has been consistently high.

For Leaseholders:

Leasehold properties, while still very common, especially in cities like London where space is at a premium, require careful consideration. Leaseholders typically own the property for a set number of years, but not the land it sits on – which means buyers need to evaluate lease terms carefully, as these can really affect a property’s long-term value.

One of the key factors to consider is the remaining length of the lease – properties with leases of fewer than 100 years can be costly to extend, which can really diminish the appeal for buyers and investors.

Leasehold buyers need to factor in ongoing costs, such as ground rent (for older properties) and service charges. The statistics highlight that service charges in London can be significantly higher than in other parts of the country – which may affect the affordability of a property.

It’s also worth being aware of your statutory rights, such as the right to extend the lease or collectively purchase the freehold, as these can offer pathways to greater control over your property.

So what should I be on the look out for as a leasehold buyer? Keep a close eye on lease terms and the associated costs of extending leases – particularly for properties with shorter leases. Investigate service charges and the potential for rising fees, especially in city centres. Understanding your rights as a leaseholder can give you leverage in negotiations and help mitigate future costs.

Final Thoughts

So in summary, while freehold properties offer long-term security and freedom, leasehold buyers will need to navigate a few more complexities. Both groups can use the latest data to make more informed purchasing decisions – balancing immediate costs with long-term value.

Looking to collectively purchase your freehold? Use our freehold purchase calculator today for an instant estimate on the premium of your freehold.