UK GOVERNMENT ABOLISHING LEASEHOLD

On the 3rd March 2025 the UK government announced that it is aiming to abolish the leasehold system and replace it and promote commonhold as the standard tenure for flats in England and Wales.

Around 70% of leasehold homes in England are flats (4.8million properties) which represents 19% of all English stock. In Wales, this figure is slightly lower at 16%

The plan by the government is to ban the sale of new flats under leasehold agreements and replace with commonhold. This would give ownership to all owners without having a separate freeholder.

Under the new legislation it would allow homeowners to collectively own and manage the entire building. It would also remove ground rents

The commonhold approach would be that all homeowners would become part of an association which would then oversee both the governance and management of the building. They can still chose to employ a managing agent to run the building but essentially giving owners more choice and control

One essential element to this is safety. Careful consideration is needed to ensure that whilst homeowners will have more power and control, we need to ensure that the latest legislation and safety aspects of running a building are met.

At a time wen the renters reform bill is also making its way through the government it is a very interesting time within UK property

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