Leaseholders are facing increasing financial pressures from service charges and building safety costs, while some are encountering difficulties selling their properties, according to new research from Propertymark.

The study, based on responses from more than 1,200 leaseholders and over 200 property professionals, highlights continuing concerns around the cost and complexity of leasehold ownership.

Propertymark said some leaseholders were facing building safety-related costs they considered unaffordable, alongside difficulties challenging service charges and obtaining sufficient information about how charges were calculated.

The research also identified problems affecting the saleability of leasehold properties.

Building safety issues, uncertainty over remediation costs and difficulties obtaining appropriate documentation can complicate transactions and, in some cases, affect whether mortgage lenders are prepared to lend against a property.

These issues are particularly relevant to landlords and property investors holding flats within larger residential developments, where increases in service charges or major works costs can significantly affect investment returns.

Propertymark said greater transparency was needed around service charges and building management, alongside continued reform of the leasehold system.

The findings come as the government continues wider reforms intended to strengthen protections for leaseholders and change the way flats and residential developments are owned and managed.

For investors, unresolved building safety liabilities and rising property management costs remain important considerations when assessing leasehold purchases, particularly where future remediation work or significant increases in service charges could affect both rental returns and resale values.