Property buyers in the North West of England are increasingly investing in leaseholds, drawn by the rapid development of cities and compelling affordability in the region, a recent market analysis by peer-to-peer real estate investment platform, easyMoney, reveals.
In their study, easyMoney scrutinised property transactions completed over the past 12 months across England and Wales (May 2022 to April 2023), comparing the market split between freehold and leasehold properties.
Nationally, leasehold sales represented 22.8% of all property transactions. However, in the North West, leaseholds made up over a third (35.1%) of all property purchases, far exceeding the national average.
This proportion surpasses every region outside London, suggesting a vibrant market for apartment purchases in the North West.
During the period studied, 27,172 transactions via leasehold were recorded, with significant activity concentrated in Bolton, Oldham, and Burnley.
London, as expected, saw over half (50.4%) of purchases conducted via leasehold, given the affordability constraints in the capital and the long-standing popularity of apartments. The South East (22.5%) and South West (20.1%) also saw a substantial share of leasehold purchases, while the East Midlands reported the fewest at 8.4%.
At the local authority level, Bolton emerged as a leading leasehold hotspot outside London, with leaseholds making up more than two-thirds (68%) of purchases. Other North West areas with high leasehold activity included Oldham (66%), Burnley (65%), Hyndburn (64%), Bury (60%), and Salford (59%). These figures further underscore the North West’s status as a leasehold stronghold, likely driven by the success of urban centres like Manchester and Liverpool.
In the City of London, every transaction (100%) used the leasehold system, with similarly high leasehold activity in Tower Hamlets (91%), the City of Westminster (88%), Camden (80%), and Hackney (80%).
Jason Ferrando, CEO 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.”
He added: “For those who can afford it, London continues to lead the way as the leasehold capital of the UK. However, many workers are priced out of the capital and seek more affordable areas while still benefiting from city living. For them, it seems the North West, with its strong supply of leasehold apartments, is the obvious route.”
