The Government’s proposed Leasehold and Commonhold Reform Bill is set to make commonhold the default tenure for new flats. The aim is to replace a tenure long criticised with one that gives flat owners genuine control.

Yet while commonhold sounds attractive, in practice it raises issues that could slow transactions, deter lenders and unsettle values. Against this backdrop, some developers are trialling alternatives that preserve market confidence while addressing consumer concerns. Weston Homes’ model is one such example.

Transactional challenge

Leasehold reform is popular with the public. Escalating ground rents and opaque management costs have damaged confidence, and reform is overdue. But commonhold as a blanket replacement creates new risks that agents and conveyancers will be the first to encounter.

Most lenders remain hesitant to lend on commonhold. Their concerns centre on service-charge recovery, covenant enforcement and the practicalities of resident-led management. If mortgage availability is limited, agents could face longer sales times, fewer buyers and downward pressure on values.

Buyers may also be wary. Commonhold requires residents to handle budgeting, maintenance and building-safety compliance. For some, collective control is empowering; for others, daunting. Without clear mechanisms for decision-making and enforcement, disputes could arise and work delayed, all affecting resale values.

For agents and conveyancers, this means uncertainty during transactions and more time explaining the tenure when speed, clarity and stable values are vital.

Pragmatic alternative

Since 2022, Weston Homes has adopted a model balancing consumer control with legal certainty. Each apartment scheme includes a Residents’ Management Company (RMC). Once sales are complete, Weston transfers the freehold to the RMC at no cost. Every flat owner becomes a member, and directors are drawn from among them.

The model retains 999-year leases with peppercorn ground rents. Lenders remain comfortable, covenants are enforceable, and transactions use familiar documents. Residents enjoy control over service charges, no ground rents and transparent management.

For agents, this brings clarity. Buyers can be reassured they will not face the abuses linked with leasehold while still benefiting from a tenure recognised by lenders and solicitors. Transactions are straightforward, values supported, and confidence strengthened.

Why this matters

The issue is not leasehold versus commonhold, but how to deliver fairness and functionality in flat ownership. Many of leasehold’s problems stem from weak regulation of managing agents. Stronger oversight would solve much of the criticism without destabilising the market.

Commonhold is largely untested, and with fewer than 25 schemes nationwide, there is little precedent. For agents, that means explaining an unfamiliar tenure, navigating uncertain lender positions and facing slower sales and weaker values.

Weston Homes’ freehold-transfer approach provides reassurance. Buyers are protected, lenders are confident, and agents free to market flats without the stigma of leasehold abuse.

Bigger picture

The Government’s 1.5-million-homes target depends on higher-density building in towns and cities. That means more flats. If commonhold is mandated without addressing its shortcomings, developers may pause projects. For the sector, that means fewer instructions, a tighter pipeline and downward pressure on values.

The lesson from 2002 is clear: unless the framework works for developers, lenders and buyers, it will not gain traction. A rushed transition could unsettle the market just when confidence is needed most.

Message for agents

Understanding leasehold reform is essential. Encourage clients to seek specialist advice; you need not interpret the new law yourselves. Reform is coming, but it need not be a binary choice between old-style leasehold and untested commonhold.

Hybrid models like the one adopted by Weston Homes show that consumer concerns can be met without losing structures that support transaction certainty. Flats can remain a strong, saleable proposition with fewer risks of stalled sales, lender refusals or falling values.

Conclusion

Commonhold as a default is not a cure-all. It risks adding complexity to a market that depends on clarity. A balanced approach that strengthens regulation, ensures transparency and supports proven alternatives is more practical. Leasehold reform is necessary, but Weston Homes’ example shows there is a third way that keeps the market moving with confidence.

Lucy Riley is Legal Director at Nockolds and a member of ALEP (the Association of Leasehold Enfranchisement Practitioners).