Commonhold: Clearing the Path for a Simpler Future in Flat Ownership?

At Scrivener Tibbatts, we keep a close eye on developments that could reshape the residential property landscape. That’s why we were interested to read a recent article by Richard Granby of Tanfield Chambers in Estates Gazette (7 June 2025), which sets out how long-awaited reforms to commonhold may finally make this alternative to leasehold a practical option, writes Clive Scrivener, Founder Partner at the Wimbledon-based Chartered Surveyors Scrivener Tibbatts Ltd, London Leasehold Valuation specialists.

Why commonhold still matters

Commonhold, introduced in 2002, was meant to be the future of flat ownership. It enables individual owners to hold the freehold of their own unit while jointly managing shared areas with other owners through a commonhold association. Yet it never gained traction.

Richard Granby writes: “Commonhold is widely accepted as a preferable system to leasehold… the public likes it, professional opinion supports it and successive governments have promoted it. So why hasn’t it taken off?”

The reasons, as he explains, are mostly structural. The commonhold regime, as currently legislated, is often seen as too inflexible. It lacks some of the legal and commercial adaptability that developers, mortgage lenders and managing agents expect from leasehold structures.

The Law Commission’s solution

Recognising these issues, the Law Commission has proposed a comprehensive overhaul of the commonhold framework, designed to:

Make it easier for leaseholders to convert their buildings to commonhold; provide flexible rules for managing mixed-use developments; improve the functioning of commonhold associations and increase lender confidence.

Granby highlights the importance of these reforms in creating a “proportionate and usable” legal framework – one that allows commonhold to work across simple blocks, mixed-use schemes and complex developments alike.

“This is not about removing necessary protections, but about tailoring them to reflect reality.”

A market-ready model?

If implemented, the proposed reforms could clear many of the barriers that have historically blocked uptake. Granby points out that commonhold could still be unattractive to some commercial stakeholders – particularly those who profit from leasehold’s income streams – but it could become genuinely viable for owner-occupiers and developers committed to long-term resident-led management.

At Scrivener Tibbatts, we see this as a positive direction. Commonhold is unlikely to replace leasehold overnight, but it offers a compelling alternative – one that gives homeowners true ownership of their flats and a direct say in how their buildings are run.

What It Means for Owners and Developers

For flat owners, commonhold could mean: no more lease extensions or ground rents; democratic control of shared areas and permanent freehold ownership.

For developers, it offers the chance to future-proof their schemes and align with public and policy expectations.

We’ll be watching the progress of legislation closely – and advising our clients, whether owners, freeholders, or developers, on how these reforms might affect them.

If you would like to discuss something related to a property valuation please contact Clive Scrivener direct via email at Clive@scrivenertibbatts.co.uk or call 020 8971 2983.