Ending the 'Feudal' Leasehold System: Government Unveils Commonhold Reforms

The government has announced major plans to reinvigorate commonhold and make it the default tenure for homeownership in England and Wales. This marks a significant step towards phasing out the outdated leasehold system.

Key Highlights:

• New leasehold flats will be banned as the government prioritises commonhold as the preferred model for home ownership.
• Commonhold will empower homeowners by giving them a direct stake in the ownership and management of their buildings, unlike the current leasehold system where landlords hold the power.
• Homeowners in a commonhold will have a say in the annual budget, maintenance decisions, and even the ability to change "local rules" for their building.
• The reforms aim to address the unfair practices and unreasonable costs that many leaseholders have faced at the hands of freeholders and managing agents.
• A new legal framework for commonhold will be introduced, along with measures to make it more attractive for developers and mortgage lenders.

Housing and Planning Minister Matthew Pennycook stated, "These reforms mark the beginning of the end for a system that has seen millions of homeowners subject to unfair practices and unreasonable costs. By taking decisive steps to reinvigorate commonhold, we will ensure that it is homeowners, not third-party landlords, who will own the buildings they live in and have a greater say in how their home is managed."

The government is committed to making homeownership more secure and empowering for individuals, building on its broader "Plan for Change" to address the housing crisis and drive up living standards.