- 20 Mar 2026
- Law Blog
- Residential Property
On 27 January 2026, the Government published a draft Commonhold and Leasehold Reform Bill. If passed, it will significantly reform the UK’s leasehold system, removing issues such as escalating ground rent and expiring leases. The intention is for commonhold to become the preferred way of registering new-build flats.
Commonhold was first introduced by the Commonhold and Leasehold Reform Act 2002, and although it aimed to become a mainstream alternative to leasehold ownership, it has not been widely adopted in practice, which is quite possibly due to lack of awareness.
In this article we explore what commonhold is and answer some of the more frequently asked questions relating to it.
What is Commonhold?
Under commonhold, each flat in a shared building is known as a “unit” and each unit is owned as a freehold. All unit owners then collectively manage the building and its shared areas.
What are the Key Features of Commonhold?
No Ground Rent
Commonhold has no landlord. Instead, all unit owners automatically become members of a Commonhold Association (or Resident’s Association), which manages the building and shared spaces. Some Associations may appoint managing agents to assist with the administrative burden.
The Commonhold Community Statement (CCS)
The CCS sets out the rules for using and managing each unit and the common parts. It also defines the rights and obligations of both the Association and the unit owners. Unlike leases, which can vary widely in wording, the CCS is in a standard, prescribed form and applies equally across all commonhold developments.
Commonhold Assessments
Each unit owner contributes to the costs of running and maintaining the building, usually as a percentage of the total costs. These contributions, known as Commonhold Assessments, cover day‑to‑day services (such as cleaning and insurance) as well as major repairs (such as roof works).
Mutual Enforcement of Rights
Unit owners can enforce the obligations in the CCS directly against one another or against the Association.
Perpetual Ownership
Unlike leasehold, which expires after a set number of years, commonhold ownership is freehold and does not expire.
Frequently Asked Questions
- Does commonhold apply to commercial property?
Yes. Commonhold can include commercial units such as offices, restaurants, shops, garages, and parking spaces. Each unit and the common parts receive their own registered title at the Land Registry.
- How do you set up a Commonhold Association?
A Commonhold Association is a limited company. It must be registered with Companies House and is governed by its articles of association. Our team can assist with preparing and registering the required documents for registering a commonhold association.
- Can a leasehold scheme be converted to commonhold?
Yes, a leasehold scheme can convert provided the freeholder, all leaseholders, and any lenders with an interest in the property unanimously agree. When the bill is passed, there will be no requirement for existing leaseholders to convert to commonhold, but new-build leaseholds will be banned moving forward.
- Can I rent out my unit in a commonhold?
You can let out your unit, but not for a premium and not for a term longer than seven years, and as a result, short-term lettings are more typical in commonhold buildings.
- What happens if a unit owner does not pay their management costs?
If a unit owner does not pay their Commonhold Assessment, the Association can recover the debt through the civil courts. As commonhold ownership is freehold, there is no forfeiture process, but ultimately the Association may seek an order for sale if debts remain unpaid.
In Summary
As the Government moves towards making commonhold the standard form of ownership for new‑build flats, understanding how the system works has never been more important. Commonhold offers a clearer, fairer and more sustainable alternative to traditional leasehold ownership, giving homeowners long‑term security and a direct say in the management of their building.
If you are considering purchasing a unit in a commonhold development, converting an existing leasehold building, or need guidance on how the upcoming reforms may affect you, our team is here to advise on 0800 542 4245.
Photo by Seb Doe on Unsplash.