Barnet residents face higher service charges as leasehold market shifts

Barnet residents will see a growing number of new blocks that are not offered for purchase under leasehold terms. Luke Ward, Director for Housing, Economy and Placemaking at Barnet Council, told the London Assembly Housing Committee that developers are increasingly opting for Build‑to‑Rent, co‑living, student accommodation and sheltered housing for older people to satisfy demand.

Leasehold still dominates the capital

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London’s housing market continues to be characterised by a high proportion of leasehold properties. The figure stands at 36.1 per cent, according to data cited by MyLondon. This share is more than double the national average, leaving many owners subject to service‑charge bills that can rise sharply over time.

“Developers are meeting demand by moving away from leasehold.”

Luke Ward, Barnet Council

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The London Assembly Housing Committee reported that the average household in the capital pays £3,912 each year in service charges. Those costs are levied by freeholders and can include maintenance, insurance and other communal expenses. The high level of charges has been highlighted as a factor that discourages first‑time buyers.

Developers pivot to alternative tenures

Ward explained that a block of fifty flats built five years ago would likely have been leasehold. Today the same site might be a Build‑to‑Rent development, a co‑living scheme, or a purpose‑built student residence. He said the shift reflects both buyer reluctance to take on leasehold liabilities and the financial pressure on developers from rising construction costs.

Harry Scoffin, founder of the Free Leaseholders campaign, told the Local Democracy Reporting Service that the leasehold market has collapsed, forcing developers to focus on rental‑only models. He warned that this trend reduces the supply of homes that owners can control directly through share‑of‑freehold arrangements.

Affordable‑housing delivery falls short

Mayor Sadiq Khan’s Affordable Homes Programme for 2021‑26 recorded 14,335 new affordable‑home starts, well below the 17,800 units originally targeted. The programme’s deadline has been extended by six months, but analysts say the city is unlikely to meet the revised goal.

A Centre for Cities analysis released this week projects that by 2036 London will have built affordable homes equal to only 18 per cent of its priority waiting list. Rural areas are expected to achieve 46 per cent, while other mayoral regions will reach 26 per cent. Ant Breach, Director of Policy and Research at the think‑tank, argued that funding should be re‑targeted to cities where housing pressure is greatest.

For Barnet, the combination of high leasehold charges and a shift toward rental‑only schemes means residents may face fewer options to buy new homes at affordable rates. The council has indicated it will monitor the trend and work with developers to preserve some share‑of‑freehold opportunities where possible.

The next formal step is the upcoming review by the London Assembly’s Housing Committee, scheduled for early October. The committee will consider evidence from council officials, campaign groups and industry bodies before recommending any policy adjustments.