What is the Commonhold Council?

The new Commonhold Council held its first meeting last month, marking an important step in exploring commonhold as an alternative to leasehold ownership. The idea of commonhold is not new; in 2018, the Law Commission proposed reforms aimed at making it a viable option for homeowners. Now, this advisory panel will assess those recommendations and determine if they can be implemented effectively. Their goal? To see whether commonhold could provide a better, fairer way of owning flats compared to leasehold.

Who is Involved in the Commonhold Council?

The Commonhold Council is chaired by Building Safety Minister Lord Greenhalgh and includes representatives from a range of leasehold groups and industry experts. Among its members are:

• The British Property Federation (BPF)
• The Building Society Association
• The Federation of Private Residents' Associations (FoPRA)
• The Law Society
• The Leasehold Knowledge Partnership

Additionally, a technical support group has been set up to provide practical, legal, and analytical expertise to the Council.

How Does Commonhold Work?

Under the commonhold system, flats can be owned freehold, just like houses. Instead of a landlord-tenant leasehold structure, all flat owners become members of a company that owns and manages the shared areas and the building itself.

The Benefits of Commonhold

• More control – Residents have a greater say in how their building is managed.
• Transparency – There are no hidden charges or unexpected fees.
• Community-led decision-making – Homeowners can directly influence how shared facilities are maintained and used.

This system is widely used in many countries, offering a proven alternative to leasehold ownership. But if commonhold works so well elsewhere, why hasn’t the UK fully embraced it yet?

The Challenges of Commonhold

While commonhold sounds appealing, it comes with significant challenges. One of the biggest concerns is the level of collective responsibility required. Key issues include:

• Financial arrangements and liabilities – How will funds for major repairs and ongoing maintenance be managed?
• Resident disagreements – Getting buy-in from all flat owners on spending priorities can be difficult.
• Managing the commonhold company – It requires time, expertise, and commitment, which not all homeowners may have.

For some larger or more complex buildings, professional property management companies may still be necessary. However, in some cases, residents may attempt to self-manage, underestimating the complexities involved.

Could Commonhold Lead to Property Neglect?

One worst-case scenario is that some commonhold buildings could fall into disrepair if residents fail to agree on funding and maintenance decisions. Without a clear decision-making process, disputes over spending priorities could delay essential repairs. Over time, this could devalue the property and lead to an eventual need for professional management—only at a higher cost. While some commonhold residents will recognize the value of professional property management, others may take a "how hard can it be?" approach. Unfortunately, in most cases, the answer is “harder than it looks” and more expensive than expected.

What’s Next for Commonhold?

The Government appears to see commonhold as a solution to the flaws in the leasehold system, but in reality, it comes with its own set of challenges. The Commonhold Council will need to carefully assess whether the benefits outweigh the risks and determine if additional legal and financial safeguards are needed. Since the Council members represent a cross-section of stakeholders rather than having a vested interest in commonhold itself, their findings will be crucial in shaping the future of flat ownership in the UK. We’ll be keeping a close eye on their progress—and watching to see if commonhold truly has the potential to replace leasehold, or if it will simply introduce a different set of problems for flat owners.