The writing has been on the wall for a long time—people want control over their homes. Leasehold reform in favour of dwelling-holders has always been the direction of travel. While this shift will be challenging for some, history tells us that homeowners gaining more control over their living spaces is an inevitability.
Owner-Controlled Management on the Rise
From a management perspective, the market is shifting towards owner-controlled management models. Right to Manage (RTM) companies and Resident Management Companies (RMCs) already manage around half of the estates in England and Wales. With the growing momentum behind Commonhold, this share is only set to increase.
The Benefits of Commonhold
There’s a reason Commonhold has long been viewed as the preferred alternative to leasehold.
1. A Guaranteed Right to Vote Over Management Matters – Under leasehold, even where leaseholders form an RTM or RMC, there are often restrictions and conflicts with freeholders, particularly when it comes to major works or long-term estate planning. Commonhold removes this tension, giving all flat owners a direct and equal say in how their building is managed.
2. No Diminishing Lease Term – One of the biggest drawbacks of leasehold is that, over time, the lease term runs down—reducing a property’s value and forcing owners to pay for lease extensions. With Commonhold, this problem disappears. Ownership is permanent, just like freehold houses, and there’s no ticking clock.
These are two undeniable advantages of Commonhold over leasehold. But they don’t come without challenges.
Service Charges Are Here to Stay
One thing that needs to be made loud and clear—Commonhold will not eliminate service charges. This might seem obvious, but mainstream news outlets are creating a misleading narrative, suggesting that switching to Commonhold somehow removes the need for ongoing property costs.
We, at JFM, are deeply concerned about this misinformation. In reality, Commonhold may have no impact on service charge levels. In some cases, it could even increase costs, as legal experts are brought in to navigate the uncertain terrain of new case law.
Commonhold vs. RTMs & RMCs – Will It Feel Any Different?
For many flat owners, the day-to-day experience of Commonhold may not feel dramatically different from living under an RTM or RMC. These structures already offer owner-led management, and while there are legal distinctions, most dwelling-holders won’t notice material differences in how their buildings are run.
That said, Commonhold governance will need oversight.
The Need for Regulation in Commonhold Associations
We’ve seen incredible, well-run estates where dedicated flat owners take pride in running RMCs and RTMs. But let’s not pretend that every estate has competent leadership.
If the government is serious about regulating Managing Agents, then they must also regulate who can make financial and operational decisions within a Commonhold Association.
The sums of money flowing through these systems are huge. Even well-meaning association leaders will need support, training, and accountability to their neighbours. Otherwise, we risk replacing one flawed system with another.
What About Existing Leaseholders?
Perhaps the biggest concern in all of this—what happens to current leaseholders?
The transition to Commonhold must not create a third-class property group, where leasehold flats become undesirable, difficult to sell, and devalued overnight. We’ve seen it before—when governments introduce well-intended policies, it’s the flat owners who bear the burden of unintended consequences (look no further than the Building Safety Act).
There is a real risk that those who Commonhold reforms are supposed to help end up in a worse financial position.
Progress is Good – But Let’s Be Honest
We support reform. We support progress. But let’s make sure this legislation actually benefits flat owners—all flat owners—and those who invest in their future homes.
And can we please be honest? These buildings will still need maintenance, investment, and strong financial oversight. Commonhold is not a magic fix—it’s a new structure with its own set of complexities.
Lawmakers must get this right. Otherwise, we risk creating more problems than we solve.
