The scale of leasehold property in England – latest government figures explained

If you thought leasehold was a niche corner of the market, the numbers released by the Ministry of Housing, Communities and Local Government (MHCLG) suggest otherwise – almost five million homes across England are held on a leasehold basis. That figure, drawn from the 2024/25 estimates, represents roughly one in five dwellings and underpins a complex web of responsibilities between leaseholders and freeholders.

The bulk of those leasehold properties are flats. MHCLG estimates that 93 % of owner‑occupied flats and 74 % of privately rented flats are leasehold, amounting to about 3.4 million units. The trend is reinforced by HM Land Registry data, which shows that 98 % of flat sales recorded in 2025 were leasehold. Unsurprisingly, constituencies with a high concentration of flats – many in London and other major cities – record the highest proportion of leasehold transactions.

Houses tell a different story. Only around 8 % of England’s houses were leasehold in 2024/25, though the figure spikes to 30 % in the North West. The Leasehold and Freehold Reform Act 2024 aims to curb the sale of new‑build houses on leasehold terms, a measure that has not yet taken effect but reflects a policy shift that began in 2017. New‑build leasehold house sales have already plummeted from 18 % in early 2017 to below 1 % by late 2023, while existing leasehold house transactions have held steady at roughly 7 % of all sales.

Who lives in these homes and what do they pay? The English Housing Survey shows that, in 2023/24, half of leasehold owner‑occupiers were single‑person households, 26 % were child‑free couples and 13 % had dependent children. Leasehold owners tend to be younger and more likely to belong to minority ethnic groups than their freehold counterparts. Financially, leaseholders reported a median annual ground rent of £120 and a median service charge of £1,700 in 2024/25, with flat dwellers more likely to face the higher service charge. Industry bodies such as the Property Institute and Hamptons confirm that service charges have been on the rise in recent years.

Lease length also matters. Around a third of all leases still have more than 900 years left, but 10 % are down to 80 years or less – a threshold that can depress market value and complicate remortgages. Shorter leases are disproportionately found among households headed by people aged 65 + and those in lower income brackets, highlighting a potential equity issue.

For anyone thinking of buying, renting or letting a leasehold property, the data underline a few practical steps. Prospective buyers should obtain a clear picture of the remaining lease term and factor in possible service‑charge escalations. Renters should ask about ground rent and service‑charge structures before signing up, as these costs can add up quickly. Landlords and freeholders need to stay ahead of the regulatory curve, especially as the 2024 Act moves towards implementation, potentially reshaping the supply of new‑build leasehold houses. In short, understanding the scale and nuances of leasehold ownership is now essential for making informed decisions in England’s property market.