The North West is England’s leasehold hotspot

There has been a surge in leasehold property purchases in the North West of England – thanks to affordability and the region’s fast-growing cities, research reveals.

The findings from peer-to-peer real estate investment platform, easyMoney, show that nationally, leasehold sales made up 22.8% of transactions.

However, in the North West, leaseholds represented a staggering 35.1% of all property purchases.

The firm’s study examined freehold and leasehold sales completed between May 2022 and April 2023 in England and Wales.

‘Why workers are buying leasehold apartments’

Jason Ferrando, the chief executive of easyMoney, said: “The North West is fast developing into a hub of economic activity, explaining why workers are buying leasehold apartments in the region.

“The success of Manchester and Liverpool has been a trend for a few years, but it seems this growth is spreading to other traditionally less fashionable towns and cities in the North West, with Bolton leading the way when it comes to the highest proportion of leasehold purchases outside London.”

He added: “For those that can afford it, London continues to lead the way as the leasehold capital of the UK, where over half of transactions are made using that model.

“However, affordability is key, and many workers are priced out of the capital and search for somewhere new to put down roots, while still being able to benefit from all that living in or near a city offers.

“For them it seems the North West is the obvious route, where there’s clearly a strong supply of leasehold apartments to purchase at the fraction of the cost of buying in London.”

A flourishing market for apartment acquisitions

The proportion of leasehold sales is higher than any other region outside of London, indicating a flourishing market for apartment acquisitions in the area, the firm says.

A total of 27,172 leasehold transactions occurred during the study period, with strong activity concentrated in Bolton, Oldham and Burnley.

London, where affordability constraints have long made leasehold purchases common, saw leaseholds account for more than half (50.4%) of all property buys.

The South East and South West also had substantial leasehold purchase percentages at 22.5% and 20.1%, respectively.

Meanwhile, the East Midlands recorded the lowest number of leasehold purchases at just 8.4%.

List for leasehold purchases outside London

Bolton topped the list for leasehold purchases outside London with a striking 68% of transactions.

Following closely were Oldham (66%), Burnley (65%), Hyndburn (64%), Bury (60%) and Salford (59%).

These figures solidify the North West’s status as a leasehold hotspot, thanks to the success of major cities such as Manchester and Liverpool.

In the City of London, every property transaction used the leasehold system – and leasehold sales also dominate in Tower Hamlets (91%), the City of Westminster (88%), Camden (80%) and Hackney (80%).