Leasehold Bottlenecks Leave Buyers and Sellers Waiting Longer to Complete

Why It Matters

Extended timelines erode transaction certainty, pressuring mortgage markets and consumer confidence while hampering labour mobility and broader economic growth. Leasehold delays amplify these risks, especially in high‑density urban areas where flats dominate.

Key Takeaways

• Average offer-to-exchange time hit 104 days in April 2025.
• Leasehold sales now take 155 days, 58 days longer than freeholds.
• 34% of leasehold buyers drop out, versus 25% for freeholds.
• Late-stage fall‑throughs rose to 23% of failures, up from 18% in 2019.
• Mortgage deals lag cash purchases by nine days, widening gap again.

Pulse Analysis

The post‑pandemic housing market in Britain is confronting an unprecedented slowdown in transaction speed. Data from Connells shows the average interval from offer acceptance to contract exchange has ballooned to 104 days, a 37% increase over pre‑COVID levels. This elongation is not uniform; mortgage‑funded purchases now take nine days longer than cash deals, reflecting tighter lending criteria and longer chain complexities. As buyers remain in limbo longer, they become more vulnerable to fluctuating interest rates and shifting personal finances, which can destabilise deals before completion.

Leasehold properties are the primary driver of the slowdown. In April 2025, leasehold transactions required an average of 155 days to reach exchange—58 days more than freehold sales and the widest disparity ever recorded. The delay stems from additional legal checks, the need to obtain detailed lease documentation, and slower responses from managing agents. Urban centres such as London, where flats dominate, feel the impact most acutely, with leasehold fall‑through rates climbing to 43% compared with 36% for freeholds. Buyers often withdraw after the 115‑day mark, when prolonged due diligence uncovers issues that could have been identified earlier under a faster process.

The ripple effects extend beyond individual transactions. Higher fall‑through rates and longer exposure periods dampen consumer confidence, constrain labour mobility, and can suppress broader economic activity. Mortgage lenders face increased risk as loan‑to‑value assessments become outdated during protracted negotiations, potentially tightening credit further. Policymakers and industry stakeholders may need to streamline leasehold conveyancing, promote digital documentation, and encourage clearer timelines to restore efficiency and protect the housing market’s role as a catalyst for economic growth.