Lucy Riley, Legal Director, Nockolds and a member of ALEP (Association of Leasehold Enfranchisement Practitioners)
A building with six flats above a shop and a residential tower with hundreds of homes may both be described as blocks of flats. But the decisions required to run them, the people involved and the consequences when something goes wrong can be very different. If commonhold is to become the standard form of ownership for new flats, its success will depend on whether the framework can accommodate that variety.
The draft Commonhold and Leasehold Reform Bill, published in January 2026, proposes a revised commonhold framework and easier conversion for existing leaseholders. The Government intends to introduce a Bill to Parliament during the current session. [PN1] Its proposals are welcome, but it is important to look beyond the tenure’s appeal and consider how it will work in buildings with very different needs.
Under commonhold, an individual owns their unit on a freehold basis and belongs to a commonhold association, which owns and manages the common parts. The commonhold community statement sets out the rights and obligations that apply. Owners have a direct role in decisions about the building, but they also share responsibility for its upkeep.
Small buildings and large decisions
A small block might appear an obvious candidate. Owners may know one another, understand the building and be able to reach decisions without a complicated management structure. But a small number of homes also means that each owner has a greater share of the financial burden. An expensive roof repair cannot be spread across hundreds of households and a single unpaid contribution can have a significant effect on the budget.
A disagreement between two neighbours may also be harder to resolve when they account for a large proportion of the votes. Clear procedures for decisions, disputes and arrears matter as much in a small building as they do in a large one. Professional management can help, although its cost will also be shared among fewer owners.
A larger development can spread the cost of management and major works more widely. It may also have a bigger pool of people with the skills and time to serve as directors. But a lift, complex heating system or building safety obligations can make management much more demanding. The association will need access to competent professional advice and a clear understanding of its responsibilities. Size alone is therefore no guarantee of either simplicity or difficulty.
Mixed use and competing interests
A building containing homes, shops and offices presents a different challenge. A shop may depend on deliveries at times when residents want a quiet entrance. A commercial occupier may use some facilities but not others. The question is how rights, costs and decisions are allocated fairly when different parts of the building have different needs.
The proposed reforms seek to make commonhold more flexible, including for more complex developments. The final legislation and the documents used in individual schemes will need to provide workable arrangements for such interests. A commonhold association must be able to make decisions about the whole building while recognising that an expenditure may affect one group more than another.
The people behind the structure
The physical building is only part of the picture. Some owners will welcome a say in budgets and repairs. Others may be working long hours, live elsewhere or be unable to take on a direct role. Commonhold does not require every owner to manage the building personally: an association can appoint a managing agent. It does, however, need a functioning association that can make decisions and hold its advisers to account.
Existing leaseholders considering conversion will also need to look carefully at the route, cost and practical implications for their particular building. Buying the freehold and conversion involve distinct questions, and the final statutory arrangements remain subject to Parliament. A building with unresolved repairs or disputes will not shed those problems simply by changing tenure.
Commonhold offers a valuable opportunity to give owners greater control, and it should be capable of working in many types of building. But there is no substitute for asking practical questions before the first resident moves in or a conversion begins: who will make decisions, how will repairs be funded and how will different interests be balanced? The answers, rather than the label alone, will determine whether a commonhold works well.
