The Government’s pledge to end the sale of new leasehold homes by the end of this Parliament was presented as a significant shift in how property is owned in the UK. For many landlords, this change cannot come quickly enough.
The current leasehold structure gives freeholders ownership of the building while leaseholders pay for the right to live in their property for a set period. The proposed move to commonhold ownership would align the UK with models already used across Europe and North America.
In a commonhold system, each flat owner owns their home outright. Shared spaces such as entrances, roofs and gardens are managed collectively through a commonhold association. Every homeowner has a vote and the group can agree rules for the building, including restrictions on short-term lets. A new legal framework would also standardise how associations operate, which could remove many of the inconsistencies that cause problems under the existing system.
The Government has promised to “reinvigorate” commonhold and replace new leasehold flats entirely. Many landlords would welcome this. Leasehold has become associated with delays to essential safety works, rising service charges, costly ground rents and disputes that can drag on for months.
Our latest landlord survey highlights the scale of dissatisfaction. Only one in nine landlords said they had no issues with leasehold. More than half identified service charges as their main frustration while others mentioned maintenance problems, challenges remortgaging and the extra costs that come with ground rent. These responses show just how widely felt the concerns are and why reform is needed. Confidence in delivery is far lower.
Appetite for change but uncertainty about whether it will happen
Commonhold is not a new idea. It was introduced almost 30 years ago, yet fewer than 200 developments in England and Wales use it today. Governments have discussed reform for decades but momentum has been slow.
When we asked landlords who collectively own around 3,000 properties if they believed the current proposals would be delivered, only a third said yes. In Wales, three quarters of respondents said they did not expect the plans to materialise. Landlords in the North of England were more optimistic, although more than half still felt the goal was unlikely.
Outlook varied depending on ownership structure. Landlords operating through limited companies were generally less confident than individuals, possibly because the transition to new tenure models may introduce additional cost or complexity for company structures.
Reform needs clarity and commitment
The message from landlords is clear. The ambition is welcome but it must be supported by detailed planning. Any successful shift to commonhold requires a clear legal framework that protects property values and gives confidence to landlords, lenders and managing agents. Without this, there is a risk the reforms stall and leave both landlords and leaseholders uncertain about their rights and responsibilities.
Timing also matters. The private rented sector is already adapting to major changes, including the Renters’ Rights Bill and new energy efficiency expectations. Any overhaul of property tenure must be introduced carefully to avoid additional pressure on landlords who continue to play a crucial role in meeting housing demand.
A sound idea, but delivery will determine success
Most landlords agree that the system needs to be simpler and more consistent. Commonhold offers a more transparent approach to ownership. However, progress depends on strong leadership, clear communication and steady implementation.
At Landbay, we understand how important certainty is for brokers and landlords. We will continue to monitor developments and share insight from our regular landlord surveys as the landscape evolves.
Modernising property ownership is the right ambition. The challenge now is turning that ambition into action.
If you have any questions or would like to discuss your next buy to let case then please reach out to your local BDM.