The proposed shift from leasehold to commonhold represents one of the most significant changes to residential property ownership in England and Wales in decades.
While Scotland has long operated under its own distinct system of shared ownership and management, these reforms are shaping important conversations across the wider UK housing sector about transparency, resident involvement and the long-term management of developments.
While the direction of reform is widely supported, important questions remain about how it will work in practice across the complex developments that characterise much of England and Wales’ housing market.
To explore these issues, The FirstPort Group recently organised a roundtable bringing together senior representatives from more than twelve leading residential developers and housing associations, co-chaired by Robert Courts KC and Mairead McErlean, Head of Compliance and Regulatory Affairs at FirstPort.
Several key themes emerged that policymakers will need to address if the reforms are to deliver their intended outcomes.
Education and expectations: Commonhold fundamentally changes the role of flat owners, who collectively assume responsibility for governance, maintenance and long-term management. Without a clear understanding of these obligations, residents may underestimate the level of engagement required to maintain building safety and the long-term value of their homes.
Building safety accountability: As commonhold associations assume ownership and management responsibilities, safety duties will need to be clearly defined. Without robust governance structures, accountability risks becoming fragmented, particularly in larger or more complex developments.
Complex and mixed-use developments: Many modern developments comprise multiple buildings, shared infrastructure, commercial premises and a mix of tenure types. Current draft proposals appear heavily building-focused and may not yet fully reflect how commonhold would operate in these more complex environments.
Social housing and shared ownership: Housing associations are often the largest financial stakeholder within a building. How voting rights and governance structures operate will be important to ensuring both resident participation and the legitimate interests of housing providers are protected.
Introducing commonhold without fragmenting the market: A phased approach could allow early learning and refinement, but may influence buyer behaviour. A single implementation date would create a level playing field in the new build market, though it would require rapid industry adaptation.
The success of these reforms will ultimately depend on how well legislation reflects the operational realities of modern residential developments. Clear governance frameworks, well-defined safety responsibilities and informed homeowners will all be essential to ensuring commonhold can work effectively in practice.
