COMMONHOLD AND LEASEHOLD REFORM
Commonhold and leasehold reform is set to reshape the property sector. In one of our webinar polls, 30% of participants identified leasehold and commonhold reform as the legislative change most likely to have the greatest commercial impact on the property market over the next three years. The Government's consultation on the draft Commonhold and Leasehold Reform Bill represents one of the most significant changes to property ownership in decades, including restrictions on the creation of new long leasehold flats and a shift towards commonhold as the default ownership model for many future residential developments. While much of the discussion has focused on the impact on leaseholders, the proposed reforms have far-reaching implications for developers, housing providers, institutional investors, pension schemes, landed estates and others with long-term property interests.
We have produced a range of resources to help organisations understand the changing landscape. Explore our articles, podcasts and training materials for insight into commonhold reform, its potential impact and the issues stakeholders should be considering now.
Commonhold and Leasehold Reform: what it means for developers and leaseholders
The publication of the draft Commonhold and Leasehold Reform Bill (the Bill) at the start of this year has the potential to mark a watershed moment in the evolution of property law in England and Wales. Those of us of a certain age will remember that commonhold was introduced with fanfare in September 2004 under the Commonhold and Leasehold Reform Act 2002. I recall attending detailed training sessions in anticipation of spending much of my career as a property lawyer setting up and generally advising on commonhold structures. All that time freezing in an overly air-conditioned seminar room was to no avail as I have not dealt with a single commonhold structure. I feel confident that I’m not the only professional in this position as to date there are less than 20 commonhold schemes in England and Wales.
Successive Governments have agreed that leasehold structures do not work for residential property. So, to avoid a repeat of the millennial damp squib that followed commonhold’s launch, the Bill proposes to ban new leasehold residential flats except in limited instances.
FOREWORD BY BETH MARGETSON, COMMERCIAL PROPERTY PARTNER
RESOURCES
The law as to leasehold dwellings is currently undergoing the most fundamental change in living memory. The Renters’ Rights Act 2025 has now been in force for several months and issues are becoming apparent. Also, consultation continues on implementation of the Leasehold and Freehold Reform Act 2024 and there is ongoing judicial review on leasehold enfranchisement. In addition, the government is adamant that commonhold will replace new leasehold flats in the near future. The course is essential for property professionals and also for developers.
Topics covered include:
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Latest on the Renters’ Rights Act 2025 and ‘Register your rental property’;
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Latest on the Leasehold and Freehold Reform Act 2024;
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Latest on leasehold extensions and enfranchisement;
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The reform of commonhold and the ban on new leasehold dwellings; and
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Recent case law on Building Safety, Relevant Buildings, Relevant Defects and Fire Safety.
Our Head of Legal Training, Richard Snape, hosted the webinar Restrictive Covenants, Positive Covenants and Commonhold. The webinar covered key issues relating to the enforceability of restrictive and positive covenants in freehold land.
Topics included:
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Enforceability of restrictive covenants against third parties;
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Identifying the dominant land;
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Tips as to how to render restrictive covenants unenforceable;
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Enforceability of Positive Covenants; and
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Commonhold as a means of enforcing positive covenants.
In this episode, hosts Richard and Lizzie answer some of our audiences’ questions from our webinar on Restrictive Covenants, Positive Covenants and Commonhold. Richard covers restrictive and positive covenants enforcement, disputes, and the future of commonhold.
Drawing on scenarios faced by developers, surveyors, and other property professionals, we explore what actually happens when covenants are breached, how enforceability works in practice, and where the law still leaves uncertainty.
Read our article for BE News on the draft Commonhold and Leasehold Reform Bill.
Head of Legal Training, Richard Snape, featured in BeNews 'The draft Commonhold and Leasehold Reform Bill: common by name, complicated by nature'. In the article, Richard discusses the proposed legislation, impact on ground rent and, what's next for occupiers and developers. Read the full article here.
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