Understanding the proposed changes
Most flat owners today hold a lease. This means you own your home for a fixed period, contribute towards service charges, and may pay ground rent, while the building itself is owned by a freeholder.
Commonhold is often described as an alternative model, where flat owners collectively own and oversee their building. In theory, this gives residents greater control and removes ground rent altogether.
The intention behind the reforms is a good one: to improve transparency, fairness, and resident involvement.
What’s important to keep in mind
While commonhold is being talked about as something new, many of the benefits being highlighted are already available to leaseholders now.
Through Right to Manage (RTM), leaseholders can already take control of how their building is managed, without buying the freehold. For those who want to go further, enfranchisement allows leaseholders to collectively purchase the freehold itself.
Both options can give residents real influence while still allowing a professional managing agent to handle the practical, legal, and financial responsibilities of running a building. This is something we already support leaseholders with, carefully and clearly.
Ground rent: a gradual change, not an instant fix
There’s also been some confusion around ground rent. Current proposals suggest a cap on existing ground rents from 2028, rather than an immediate removal. This is an important step, but it’s not the same as ground rent disappearing altogether.
What won’t change
It’s also important to be realistic about what reform doesn’t change.
Even under commonhold:
- Service charges will still exist
- Buildings will still need maintenance and compliance
- Managing agents will still play a vital role
Blocks don’t manage themselves. Lifts still need servicing, roofs still need repairing, budgets still need managing, and legislation still needs to be followed. The structure of ownership may evolve, but the need for good, responsible management remains.
A thoughtful, leaseholder-led approach
Commonhold will be mandatory for new flats. While it may suit some buildings and communities, for many leaseholders, existing routes like RTM or enfranchisement already provide the control and transparency they’re looking for, without adding unnecessary complexity.
At Prime, we don’t believe in overstating change or pushing one solution above another. Our role is to help leaseholders understand their options, weigh up what’s right for their building, and feel supported in making informed decisions.
Our approach is simple: we care for buildings and residents the way a homeowner would, with attention, clarity, and long-term thinking, so you can move forward with confidence, whatever reforms may bring.