New leasehold reform: Will it make homeownership fairer?

  • New leasehold reform will save millions of leaseholders tens of thousands of pounds
  • What does the reform change?
  • Will it make homeownership fairer?

 What is the new leasehold reform?

New legislation that has been brought forward, will give leaseholders the right to extend their lease for 990 years at zero ground rent. The leasehold reform will save millions of leaseholders up to tens of thousands of pounds. The government described these measures as part of English property law's biggest reforms in 40 years.

Housing Secretary Robert Jenrick says: "Across the country, people are struggling to realise the dream of owning their own home but find the reality of being a leaseholder far too bureaucratic, burdensome and expensive.

"We want to reinforce the security that homeownership brings by changing forever the way we own homes and end some of the worst practices faced by homeowners."

What does the reform change?

The reform will give leaseholders the right to extend their lease by a maximum span of 990 years with zero ground rent. Previously, leaseholders of houses have only been able to extend their lease for 50 years at a time and had to pay ground rent. 

Leaseholders have also been met with expensive charges to extend the lease. Some of these extra costs have now been abolished with the reform, such as the "marriage value". This required leaseholders to share information with the freeholder about potential profits from extending a lease.

A cap on ground rent, the cost paid when a leaseholder extends the lease or buys the freehold, will also be introduced. An online calculator will now make it easier for leaseholders to know how much it will cost to do either. This hopes to make the costs associated with a lease more transparent.

Will it make homeownership fairer?

While the proposed leasehold reform has much to support, many in the industry feel they need some more detailed information. There are concerns that the reform has created further uncertainty for leaseholders. Moreover, there is apprehension that the proposed actions could take years to become law.

However, for many in the property industry, there is a shared hope that the reform will make homeownership fairer and put an end to the ground rent scandal.

What is the ground rent scandal?

The ground rent scandal is one of the reasons why leasehold reform is so important. Objections to the unfair expenses on leasehold flats and homes sold with unclear clauses began some years ago. Some clauses involved freeholders increasing ground rent excessively. In some cases, leaseholders saw their rent double every ten years. The increased costs left some homeowners struggling to sell their property. As a result, properties with short-leases or high ground rents are often left vacant. 

Mark Hayward, the chief policy advisor at Propertymark, discusses the organisation's research into the ground rent scandal:

"Our research' Leasehold: A Life Sentence' in 2018 found that 46 percent of leasehold house owners were unaware of the escalating ground rent when they purchased their property. Over one million households in the UK are sold through a leasehold, and this new legislation will go a long way to help thousands of homeowners caught in a leasehold trap."



Homeowners will see direct benefits from the government's leasehold reform. 4.5 million homeowners will save up to thousands to tens of thousands of pounds. Furthermore, the reform will allow leaseholders to buy a freehold for a lower price. Overall, homeownership costs will become cheaper, and property sales will be more straightforward.

Let's not forget about the benefits for properties with shorter leases. Properties with short-leases or high ground rents are sitting empty around the country as owners struggle to sell. Homebuyers will now become more open to purchasing properties with shorter leases leading to fewer stranded, vacant properties. 

All in all, the leasehold reform is provides willingly received changes to many in the property industry. The only desires that remain are for details to be made explicitly clear and actions to be fulfilled promptly.


London Property Market 2021

  • Londoners leave the capital
  • Foreign investment to remain strong
  • Tenant demand to increase

The development of the property market will principally rely on the UK's economic resurgence from the coronavirus. In 2021, the economy is forecast to grow by 5.3%, but the recovery still faces uncertainty.

The pandemic's ambiguity meant it was a challenging year for the property sector, and it's tough to predict how the market will prove in 2021. Despite the ongoing Brexit unpredictability, the outlook for 2021 is largely positive. Industry experts are optimistic that Brexit is not likely to have much of an impact on the housing market in the short term. This year, the London property market will see Londoners continue to leave the capital while investment from overseas remains strong. Tenant demand will begin to increase and, by the end of the year, the rate of rental decline will have slowed.

The London Exodus

The COVID crisis sparked a London exodus, with a sudden scramble to purchase homes on the outskirts of the capital. As the pandemic forced most of the nation to work from home, more and more people chose to leave London.   As a result, commuter belts have widened around London and all major cities.

In 2021, the trend is set to continue with more Londoners realising the potential of working from a rural home or commuting once or twice a week. Estate agency Hamptons forecasts that the London exodus will continue for at least the first half of the new year but may slow down as house prices flatline.

Foreign Investment

Foreign investment in the capital is predicted to maintain strong levels in 2021.

Foreign investment from around the globe forms a significant share of London's property business. Despite the challenges London is facing, investors abroad have not forgotten the long-term appeal. Recent reports state London is the second-best place for property investment in Europe. The capital had climbed two spots from the previous year's 'Emerging Trends in Real Estate' report (PricewaterhouseCoopers and the Urban Land Institute). 

Local and foreign investors alike have been closing on prime property during the stamp duty holiday. Many are raring to close deals before the additional 2% tax returns for international buyers in April. However, many industry experts are confident that the charge will not deter foreign investment.

Renters and Landlords in the Capital

In 2021, the tenancy market may improve in London.

Renters in London were at a shortage in 2020 as tenants encountered financial challenges. Job uncertainty, furlough wage reductions, and redundancies had their effect on the London rented sector. Supply increased substantially in the capital, and some landlords had to accept lower rent to avoid void periods. Central London saw rent fall by 20%, according to statistics from estate agents Chestertons. Other prime London locations saw 15% decreases, and rental prices in Greater London lessened by 4%.

This year, the number of properties available to rent will likely decline. Once restrictions begin to lift, demand is likely to pick up, and the rate of rental decline will lag. If this year sees the economy recover as anticipated, rent will likely resume growth over the course of 2022.


A Guide on How to Become a Property Surveyor - The Qualifications, Salary and Skill Requirements

To give you an insight into the profession of a property surveyor, Octagon Capital looks at everything you need to know about becoming a property surveyor.


Key Points

  • A property surveyor is a qualified professional who is brought into to assess the structural integrity of a building - maybe for purchase, sale or valuation purposes
  • A graduate surveyor can earn between £22,000 to £26,000



What does a property surveyor do?

A property surveyor is a qualified professional that assesses the structural integrity and quality of a building - including homes, offices, retail stores, garages and more.

A surveyor is typically brought in to assess the quality and value of a property, which the owner may wish to put on the market or better understand the value of their asset. The role of the surveyor is key to highlight any risks for potential owners or buyers and their involvement is usually a requirement to complete on any kind of property purchase, mortgage deal or even a bridging loan.

Property surveyors work in housing (residential) or for offices and retailers (commercial).

There are several titles under the role of a property surveyor including building surveyor, land surveyor or chartered surveyor.


What are the key responsibilities of a property surveyor?

Property surveyors essentially contribute towards the smooth running of the property market. Their main responsibilities typically involve:

  • Analysing progress reports
  • Dealing with planning applications
  • Following health and safety regulations
  • Reviewing project tenders
  • Conducting risk assessment and cost control
  • Advising subcontractors and clients
  • Preparing scheme designs with costings and specifications
  • Carrying out feasibility studies



A property surveyor checks the quality and integrity of a property or building and their role is key to proceed with a mortgage or property purchase.


What is the salary of a property surveyor?

Graduate surveyors can expect to earn between £22,000 to £26,000 and with a few years of experience, this can rise to the bracket of £28,000 to £50,000.

Senior level surveyors can expect to earn upwards of £70,000 and there is even potential to reach a six-figure salary at partner or director level.

Property surveyor salaries not only depend on experience, but also location. Surveyors based in central London can expect higher salaries than those operating outside of the capital.

According to the RICS Macdonald & Company Rewards & Attitudes Survey conducted in 2019, the average salary of a property surveyor was £48,000. Chartered surveyors were found to earn around 38% than those non-chartered.


What qualifications do you need to become a property surveyor?

To become a property surveyor, there are typical requirements of a degree or professional qualification approved by the Royal Institute of Chartered Surveyors (RICS) in one of the following subjects:

  • Civil engineering
  • Building engineering
  • Property
  • Construction
  • Surveying

Studying a RICS-accredited degree or qualification will give you the relevant training to become a chartered surveyor.

This can be completed at undergraduate level in 3 years - see RICS Courses for more information.

Courses can also be completed online here at

Another option is getting a postgraduate qualification with a RICS-accredited Masters degree which will lead towards chartered training. Some employers may even support students taking this course with funding.

Additionally, there are apprenticeship opportunities for those who do not wish to go down the formal further or higher education route -


What skills do you need to become a property surveyor?

If the idea of working as a property surveyor interests you, it is important to check whether you have the right skills required for the job role before going further. Property surveyors need to have:

  • A driving license (to visit different sites)
  • A local and practical mind
  • Strong oral and written communication skills
  • The ability to build strong relationships with clients and peers
  • Knowledge and interest in buildings and construction
  • Negotiation, presentation and report writing skills
  • Commercial awareness



A property surveyor should have good communication skills and have a good knowledge of buildings and property.


Can you work as a freelancer or with a firm?

Yes, It is possible to freelance as a property surveyor, but the decision to do so usually comes after several years of experience and building up a reputable client base. Going freelance suits those who may wish to specialise in one particular area, such as building defects or sustainability.

Typical career prospects for a property surveyor who is not freelance include working within the public sector or organisations. In large organisations, there are often formal channels of promotion and greater responsibility.

Either way, the environment you work in will certainly vary from day-to-day. For instance, you could be working on a construction site one day, and then from home or in an office the next.


The governing bodies for surveyors in the UK


The Ecclesiastical Architects & Surveyors Association (EASA) -

tax holiday ends

Is there still time to buy before the stamp duty holiday ends?

It may still be possible for buyers to take advantage of the stamp duty holiday before it ends. The stamp duty holiday will end on the 31st of March, and buyers looking to take advantage of this opportunity may be worried that it's too late. 

Thousands set to miss out on the tax holiday

The spike in interest from buyers due to the break has caused too much demand to keep up with in some areas. Buyers searching in popular locations are faced with a lack of properties of the right price range. If they are able to find a suitable property, due to the explosive demand, there are significant processing delays in getting sales through. 

Property experts warn that many buyers may be set to miss out on the £15,000 tax saving when their sale is delayed past the deadline. The rush to take advantage of the stamp duty holiday has created a staggering backlog in regulating mortgages, valuations and conveyancing. As a result, sales that were expected to take place this month may not be complete before the holiday expires. The likelihood is that thousands will be disappointed to find that they cannot complete by the 31st of March.

Calls for the tax break to be extended

There have been calls on chancellor Rishi Sunak to extend the holiday in the face of this backlog. However, the government has responded stating assertively that the deadline will not be prolonged.

Is there still time to get a sale through before the deadline? 

If you are looking to buy a property fast to take advantage of the tax break, you may still have a chance. It helps if you are fully prepared in terms of your mortgage and surveyor. If possible, you may consider employing a mortgage broker to chase any delays on your behalf. Ideally, to complete quickly, you will have no property chain to slow the process down. Brand new homes and chain free buyers get through matters faster. Purchasing a new-build home via Help to Buy could improve your chances of meeting the deadline.

However, in reality, if you haven't had your offer accepted before the end of the year, it will be hard to complete before the March deadline. Finance, surveys, and conveyancing can take up to 12 weeks.

What if you miss the cut-off date? 

There is no need to be discouraged if you do miss the cut-off date. Some experts suggest that you may, in fact, be better off waiting on your property purchase. While your tax bill will go up in April, demand is likely to begin to cool off. As the frenzy calms, you might be able to negotiate on the asking price to find an even better deal on your new home.


The UK Cladding Crisis Continues

One of the most prominent scandals currently in the UK is the cladding crisis. Up to 700,000 people are being forced to live in dangerous and unfit homes. The buildings are unsafe due to the flammable cladding material used. The type of cladding was the cause of how rapidly the fire spread in the deadly Grenfell Tower fire, which left 72 people dead in June 2017.

Government Confusion

In the wake of the tragic Grenfell Tower fire, the government decided to refurbish tower blocks with the unsafe cladding material - but did not specify who should cover the immense cost. The Government's confusing response to this crisis has left owners of up to 1.5 million flats in limbo. With the unsafe cladding on their buildings, they cannot sell or get a mortgage on their homes. Lenders are too cautious about providing mortgages for these high-rise flats unless they have certain safety certificates.

Those living in properties with the unsafe cladding are told they must spend thousands of pounds to remove it from the building. The majority, who are renters, do not even own these properties. As a result, millions have been left desperate and without options as they cannot afford the immense expense to remove the cladding, and while it remains, their properties are left worthless. Leaseholders are urging chancellor Rishi Sunak to settle the cladding scandal by covering the costs of removing the hazardous material.

Thousands of pounds in costs

Campaigners say that the cost of the urgent work needed to make buildings safe often falls on leaseholders. The sums of removing hazardous materials can reach above £100,000 per flat in the worst cases. Before the works can be done to make the buildings safe, leaseholders are also required to pay for waking watches, a 24-hour fire patrol, and other interim safety measures. These costs can reach up to £800 per month per flat. 

Earlier in the year, the Government announced a £1 billion fund towards covering the costs of necessary safety work. This cam on top of the £600 million previously committed. However, critics are adamant that the fund doesn’t go nearly far enough. They claim that the £1.6 billion will only cover the costs of fewer than 600 of the 2,957 high-rises that have registered for funding.

National effort required

Campaigners in the cladding scandal urge the Government to drive an urgent national effort to eliminate all dangerous cladding from buildings by June 2022. They push for the fund to be extended to cover all buildings, regardless of height, and deal with other dangerous fire safety defects. In response, the Government says that an ongoing effort is being led to develop a possible financing solution to protect leaseholders from the unaffordable costs. The Building Safety Programme aims 'to make sure that residents of high-rise buildings are safe – and feel safe – now, and in the future.'

However, the programme does not answer the call of flat owners left with uncertainty and desperate to move now. The Government must provide urgent clarity over what homeowners who cannot sell nor get a mortgage can do. The onus also falls to mortgage lenders, who must become more willing to accept applications from people in these flats looking to remortgage. 


How Will The Return Of International Travel Affect UK Property

Pfizer took the world by storm with the announcement that they have a vaccine in the works with BioNTech that is more than 90 per cent effective. Economic forecasts have since been enhanced and the FTSE 100 has seen several gains. Extraordinarily, the GDP is speculated to recover to levels from before the pandemic by the middle of 2021. As a promising vaccine makes its way around Europe and the rest of the world, international travel is beginning to resume. 

With the return of international travel, so too comes the international buyer - one of the most significant sectors in our cosmopolitan city. In areas such as Knightbridge and Belgravia, some estate agents report up to 70% of properties sold in the last ten years has been to international buyers. 

The coronavirus pandemic drew international travel to a near halt, stifling the property trade. In September, Heathrow arrivals were down 81 per cent on the previous year. The market so regularly accustomed to an onslaught of international buyers began to dry up. As a result, house prices in central London, usually safely afloat, decreased in value by 1.6 per cent compared to last year. 

While house prices seemingly plateaued, a newfound optimism has supplemented demand. According to London estate agents, the vaccine announcement has led to a spike in enquiries from international buyers. Despite questions still remaining on the efficacy of the vaccine out-rolling, the sense of hope is palpable. Discovering the light at the end of the tunnel has made its impression on buyers. The scale of the sudden restoration of interest has been likened to that generally reserved for a popular election result or influential budget announcement. The question remains whether this reinvigoration will last long enough to dispel the predictions of momentum loss in the housing market in 2021.

"Most people are taking a long-term view. There's an expectation that London will return, it's a question of when not if," says Ashley Wilsdon of buying agents Middleton Advisors.


Will A Covid Vaccine Bring Back Central London Property Prices?

During the coronavirus pandemic, house prices in central London challenged expectations by declining in value. House prices in the prime location fell 1.6 per cent compared to last year. This is partially due to decreased demand with post-lockdown buyers fleeing urban metropoles in search of the countryside, larger properties for home working, and gardens. City-lovers continue to question the advantages of living in the heart of a city where the buzz is on pause. Theatres, galleries, restaurants, clubs and bars have not been in normal practise for close to a year. A swift commute to work is not the luxury it used to be when you're working from home 80% of the year. A central studio flat is also not an ideal space to act like a home, office, cinema, gym and more.

What difference could a vaccine make?

The City Buzz

The announced vaccine has the power to restore the London buzz and vibrancy that allures people to the city in the first place. As entertainment industries reopen, the hope is that the bustle will return perhaps with a new-found vigour in its revitalisation. 

"The real challenge for London's prime market is supporting buyer demand and attracting buyers willing to pay more to be in a buzzing city full of all the entertainment venues, restaurants, theatres, etc. that they have come to expect. It's difficult to put a number on it but prices are definitely looking rosier with a vaccine than without next year and beyond," says Marcus Dixon of LonRes.

The Workplace Commute

As workplaces get back to normal without the fear of infection, the commute will return and boost the city centre housing market. Knight Frank's Tom Bill thinks that the one-bedroom city-centre flat which has fallen out of favour, could then be revitalised.

"If you look at one-bedroom flats in urban locations that have perhaps fallen out of favour in the past months, it's quite a good time if you're a buyer or investor to look at those. These are the types of early signifiers that smart money reacts to and further down the line rest of the market following suit."

Pied-a-Terre Properties

The central one-bed properties are likely to be snapped up by a growing group of buyers who have recently left London. Those who headed for nature are likely to find themselves needing to commute more often than expected from their country homes. These now comparatively good-value properties will serve buyers looking for a temporary place to rest their head, according to Central London agents. With a tidy sum left over from the move from the capital to the country, the pied-a-terre market is expected to grow. 


Housing Emissions Crisis To Intensify From The Coronavirus

The Royal Institute of British Architects (RIBA) has published a report warning that UK housing emissions will be skyrocketed as a result of the coronavirus pandemic.

The RIBA has cautioned that responses to the virus include changes in behaviour that will turbocharge the UK housing emissions crisis unless the Government urgently intervenes.

The coronavirus pandemic has seen a surge in people working from home, creating a shift in UK emissions contributions. There has been an immense growth in the proportion of emissions coming from the housing stock. Within Europe, the UK has one of the most inefficient housing stocks and the RIBA's 'Greener Homes' report urges the Government to enforce less wasteful strategies. The report suggests bringing forward a National Retrofit Strategy to make UK homes more energy efficient.

What is the National Retrofit Strategy?

As a part of the National Retrofit strategy, a sliding scale of stamp duty would be introduced with the most energy-efficient homes accruing significantly less tax than the least. The tax would have a cap of £25,000, 

A tax rebate may be made available for a period after purchase, encouraging homeowners to tackle their own energy-efficiency developments. The suggested improvements include insulating lofts and walls, switching to double or triple glazed windows, draught-proofing doors, windows and floors and adopting smarter heating systems.

What Does RIBA Recommend?

RIBA has outlined in the report a list of suggestions that the National Retrofit Strategy should incorporate. These include:

  • A commitment to front-load money by the Government bound to be given to energy-efficient strategies over the next ten years spent throughout this Parliament. This aims to 'address the shift in the balance of emissions and assist with the coronavirus economic recovery'.
  • More deliberate targeting of existing income support payments, including the Warm Homes Discount and the Winter Fuel Payment.
  • A distinct long-term timeline for improving the Minimum Energy Efficiency Standards in both the private and social rented sectors
  • More robust performance standards for new homes
  • Further regulation of the quality of building work to make energy efficiency improvements making energy efficiency improvements conducted by tradespeople.

President of the RIBA, Alan Jones, said: "When it comes to energy efficiency, our homes are fundamentally below the mark. Our housing stock sits shamefully behind most European neighbours, and this will only be made more obvious by the changes in working habits brought about by the Covid-19 pandemic.

"We need urgent government action – a National Retrofit Strategy – with front-loaded spending that would double as a fiscal stimulus and a new stamp duty policy to encourage homeowners to think twice about opting for sub-standard homes.

"As the Committee on Climate Change has made clear, we need the near-total elimination of housing stock emissions to reach net-zero by 2050. It's quite clear we need to start now."

The report will be included as part of a submission by the RIBA to Her Majesty's Treasury that currently evaluates how public finances can be distributed to aid in the passage to reaching net-zero

House Prices 155% Higher In British Areas Of Military Importance

A new study shows houses in postcodes belonging to significant military buildings, such as the Churchill War Rooms and Bletchley Park, tend to have higher prices.

Analysis by estate agent Benham and Reeves sees UK postcodes of military importance command higher house prices compared to the general area. The new study analysed house price data in ten military locations. On average, property prices were £618,225, which is vastly higher than the UK average. Houses in postcodes of significant military buildings are 155% more expensive than the current average in Great Britain.

The most significant price rise is in the area of Hampshire’s Beaulieu Palace - a former finishing school for special ops agents. The New Forest location has the postcode S042, in which house prices are currently 107% higher than the wider area.

Birds-eye-view of the New Forest S042 postcode.

The study revealed the second-highest house price postcode is that of The Frythe in Hertfordshire. The Frythe was used during the war as a secret research factory which manufactured army vehicles and camouflage equipment. Today, house prices in the postcode area 69% costlier than its neighbouring postcodes.

The average price for the MK3 postcode in which Bletchley Park is located is £291,274.

We, of course, cannot fail to mention the iconic Churchill War Rooms - an underground complex that housed the government command centre during World War II. House prices in the local of the Churchill War Rooms run in around £1.4 million, 49% higher than average in the SW1 postcode in Westminster. 

House prices in the postcode of the War Rooms are nearly twice as high as the surrounding Westminster area.


The director of estate agents Benham and Reeves, who conducted this study, is Marc von Grundherr. He emphasised that these costlier prices “aren’t so much an indicator of buyer demand, but more a demonstration of the pride taken in maintaining these locations and remembering the significant roles they played in their day.”


A chart published by Benham and Reeves displaying the results of the analysis.

The average overall UK house price is forecast to hit £362,350 by 2045, if the market is to continue to see property prices rise at the same rate, according to new research by estate agent Barrows and Forrester. Despite the coronavirus pandemic putting a short halt to the market, it has returned with a boom and shows no signs of slowing. Estate agents predict hose prices will continue to rise, and figures suggest that Britain’s property boom will progress. 



Can The Property Market Handle The Second Lockdown?

The property market has not shut in England despite restrictions of the second lockdown. The property market can continue to run, with viewings and valuations allowed throughout lockdown, the secretary of state for housing, Robert Jenrick, has confirmed. Renters, homeowners and buyers still able to view and move houses and construction sites remain open with tradespeople allowed to enter homes. Removal firms are also operating as usual, albeit while adhering to covid safety guidelines. The Welsh government, however, has paused all viewings.

The decision to remain open has been received well across the country. Many are eager to get on with their property exchanges and were relieved to hear that the government's approach had changed compared to the first lockdown. Back in March, all activities within the property industry were suspended for seven weeks, and estate agents were forced to shut their doors. In-person viewings were halted and builders forced to close construction sites. Surveying firms were also unable to perform on-site valuations. As a result, many home exchanges were put on hold.

Zoopla research shows the property market sales plummet over the lockdown market freeze and then rebound strongly.

As of yet, the property market is displaying flexibility and strength in the face of the second national lockdown. In fact, in the week following Boris Johnson's Saturday announcement of the lockdown, the number of pre-sale home valuations went up by 38 per cent. Many estate agents reported no difference in the number of viewing from one week to the next. Yet, the number of new viewings did fall by 15 per cent, according to Knight Frank. The number of buyers reaching out about properties also dropped, likely due in part to uncertainty on whether the property market would remain open. Nevertheless, the number of exchanges was 11 per cent higher in the week following the announcement, with the boom showing assured resilience to the lockdown. The number of sales agreed continues to grow, spurred, in part, by the stamp duty holiday.

Guy Robinson, head of residential agency at Strutt and Parker, stated: "Over the summer the industry has witnessed what can only be described as a 'mini-boom', with unexpectedly high activity levels across the UK, driven by pent-up demand after the property market was shut down for nearly three months… Usually, the market naturally starts to slow down at this time of year, but after the busiest summer that we can remember, there are a huge number of transactions in the pipeline for the coming weeks – so it is important that the market is kept moving from now until the spring when the Stamp Duty holiday is due to come to an end."