Sweeping reforms to phase out the “feudal” leasehold system could increase property prices by 10%, a study has found.
Analysis published by Knight Frank and Bayes Business School found that, if government proposals are passed in the Leasehold and Freehold Bill drawn up by levelling up secretary Michael Gove, they could increase the value of homes with short leases by 9.9%.
Reforms set out in the King’s Speech on 7 November would give leaseholders the right to extend the lease to 990 years, so they never need to fear it expiring.
