The reason some Leeds flats are selling while hundreds remain unsold - Ian Darley
It’s no secret that the apartment market is currently facing challenges and it would be easy to conclude that people do not want to buy apartments anymore - but that is not the reality.
Quality apartments that are well-presented in Leeds and every other city continue to sell every day. The difference is that buyers, and more importantly, mortgage lenders, have become extraordinarily selective. Today, the market is split in two - buildings that are professionally managed and mortgageable, and those burdened by escalating costs, building safety uncertainty and poor leasehold management.
At Zenko City Living, we estimate that only around a quarter of apartment developments in Leeds city centre currently meet most lenders’ requirements, and those homes sell. Hundreds of others remain on the market, often through no fault of the owners.
Much of today’s crisis has its roots in two separate eras. The first was the off-plan apartment boom of the early 2000s, when developments were sold using attractively low projected service charges that often proved unrealistic once residents moved in.
The second came after the Grenfell tragedy, when necessary improvements to building safety fundamentally changed the way lenders assess apartment blocks. The cumulative effect of new legislation, remediation programmes, insurance increases and additional compliance has left many leaseholders facing uncertainty over liabilities they never anticipated.
People haven’t fallen out of love with apartment living, they’ve become wary of uncertainty, which is totally understandable.
The issue leaseholders raise more than any other is service charges. Residents have seen annual costs rise dramatically, sometimes doubling over just a few years. Many leaseholders feel disconnected from how decisions are made and whether genuine value for money is being achieved.
Transparency is often the missing ingredient. Managing agents are effectively spending other people’s money, and that creates a responsibility to show value. Leaseholders should never feel embarrassed about questioning repair costs, why contracts are awarded in a certain way, or why reserve funds continue growing over time.
There are three practical ways leaseholders can get help: Work together with neighbours - building WhatsApp groups, residents’ associations and organised meetings to create the critical mass needed to influence decisions. Challenge costs constructively - request meetings with the managing agent, ask for explanations of expenditure and scrutinise the annual audited accounts rather than accepting increases at face value.
Use formal protections - leaseholders can pursue disputes through The Leasehold Advisory Service (LEASE) and raise concerns through professional industry bodies where appropriate.
In many buildings, residents may also qualify for the ‘Right to Manage’, allowing leaseholders to take over responsibility for appointing and overseeing the managing agent without purchasing the freehold.
Apartments remain an essential part of the housing market in cities like Leeds. The objective shouldn’t be to discourage people from buying them - it should be to ensure they’re buying into well-managed communities where residents understand their rights and have a genuine voice in how their building is run.
Ian Darley is head of sales at Zenko City Living.