Lauren Fraser comments in PropLaw on reforms to property ownership in the UK through commonhold tenure

While the government’s plans to abolish leasehold have dominated discussions around residential property reform, less attention has been given to what will replace it. The publication of the Commonhold and Leasehold Reform Bill earlier this year marked a significant step forward in the government’s efforts to reshape property ownership in England and Wales, including proposals to make commonhold the default tenure for new flats and to prohibit the creation of new residential leasehold flats.

Unlike leasehold ownership, which is limited by the term of a lease, commonhold allows owners to hold a permanent interest in their property. The model is widely viewed as a more democratic form of ownership, giving residents greater control over the management and governance of their buildings.

However, moving towards widespread adoption of this structure may also present challenges. Managing agents are likely to remain involved, particularly in larger developments where commonhold associations choose to appoint them. As a result, many of the existing concerns around the lack of regulation of managing agents are unlikely to disappear under a commonhold regime.

Lauren Fraser, Senior Associate in our Real Estate Disputes team, comments in PropLaw:

Most leaseholders do not currently play an active role in managing their building, but the commonhold tenure is based on democratic decisions made by the unit holders.

Read the full article in PropLaw here.