Recruitment Challenges in the UK Leasehold Market for 2025

The Leasehold and Freehold Reform Act 2024 introduces substantial changes to the leasehold sector, increasing transparency and fairness for leaseholders. However, these reforms have also heightened the demand for professionals with expertise in navigating intricate legal frameworks. The potential introduction of regulation for firms or individuals further emphasises the need for qualifications such as those offered by The Property Institute (TPI) and the Royal Institution of Chartered Surveyors (RICS).

Employers are now expected to support their staff in obtaining these qualifications by covering costs and providing study leave or structured programmes to balance work commitments with professional development. While awaiting the final decision on regulation, firms should focus on helping new entrants achieve their Level 3 and Level 4 TPI qualifications. This investment not only benefits employees but also strengthens organisational compliance and service delivery.

Workforce Expectations and Well-being

Employee expectations in the leasehold sector have shifted dramatically, with flexibility and well-being now central to job satisfaction. The TPI 2024 Wellbeing & Resilience Survey highlights that 70.35% of employees working remotely or in hybrid models report higher levels of happiness compared to those working exclusively on-site. Employee satisfaction is directly linked to retention, with happier employees being over 50% less likely to leave their roles in the next three years.

For organisations looking to improve retention, this underscores the importance of offering hybrid or remote working arrangements alongside initiatives that promote mental health and work-life balance. Without these measures, firms risk exacerbating already high vacancy rates and losing valuable talent to competitors.

Market Consolidation and Its Staffing Implications

The consolidation of small and medium-sized property management agents into larger firms is reshaping the sector’s staffing dynamics. Larger firms often have the resources to provide enhanced flexibility, such as hybrid working arrangements, alongside robust career development opportunities and comprehensive benefits packages. This makes them highly attractive to top talent, forcing smaller firms to adapt or risk losing employees.

Although recent headlines have focused on businesses bringing staff back to the office, it is clear that the leasehold market demands flexibility. Organisations that fail to offer employee-centric policies, including remote working options, competitive benefits, and opportunities for professional growth, will struggle to attract and retain talent in this increasingly competitive and consolidating industry.

Economic Challenges and Recruitment Pressures

Economic pressures, such as inflation and fluctuating interest rates, are further complicating recruitment efforts. According to the British Chambers of Commerce, 66% of firms continue to report hiring difficulties, even as some recruitment challenges ease. For the leasehold market, tight budgets may constrain spending on recruitment and retention initiatives, forcing organisations to find cost-effective but impactful solutions to fill vacancies and build resilient teams.

The Role of Recruitment Agencies in 2025

As leaseholders' expectations increase, so do the costs associated with recruitment and retention. Rising national insurance contributions and higher salary expectations are pushing firms to consider internal recruitment, but this often comes at a greater long-term cost. The TPI Wellbeing Survey highlights an alarming rise in vacancy rates, with 22.6% of roles in property management firms remaining unfilled in the past year—up 13% from the previous year. This workload imbalance is a leading cause of employee turnover in 2024, as staff are overburdened to compensate for unfilled positions.

Partnering with specialised property management recruitment agencies, such as PMR, offers significant advantages in addressing these challenges. Agencies like PMR bring industry expertise, a vast network of qualified candidates, and the ability to match talent with specific business needs. Key benefits include:

1. Time and Resource Efficiency: Agencies handle the entire hiring process, from sourcing to onboarding, freeing up valuable time for in-house teams.
2. Access to Specialist Talent: Recruitment firms maintain a pool of candidates with niche skills, such as expertise in new leasehold regulations and property management technology.
3. Improved Quality of Hires: Thorough vetting processes ensure candidates are the right fit for the role and organisation.
4. Market Insights: Recruitment professionals provide valuable guidance on industry trends, helping businesses stay competitive in their hiring strategies.

By partnering with PMR, organisations can streamline their hiring process, reduce time-to-fill, and secure top talent in a challenging market.

Annie McGrandles MRICS FIRPM, Head of Portfolio & Block Management, Property Management Recruitment