What is Commonhold?
Burns Hamilton’s Operations Director, Emily Gray, offers expert advice.
Commonhold is often described as a simpler, fairer way of owning a flat and it is rapidly moving back into focus as proposals look to replace leasehold as the default tenure for new developments. At its simplest, commonhold allows flat owners to own their property outright on a freehold basis, with no lease expiry and no landlord sitting above them. Instead, owners collectively own and manage the shared areas through a commonhold association.
On paper, the advantages are clear. Ownership is permanent rather than diminishing over time. There is no ground rent, and costs are set more transparently through agreed budgets. Perhaps most significantly, owners have a direct say in how their building is managed, which addresses some of the longstanding frustrations associated with leasehold, particularly around control, accountability and decision-making.
However, that shift in control also brings added responsibility. Commonhold relies on owners engaging in governance, which can be challenging where there are differing priorities. Decision-making may be slower, and the need for financial discipline, particularly around reserve funds and long-term planning, is critical. There is also a practical question of capability: not all groups of owners will have the time, expertise or inclination to run what is, effectively, a small organisation.
It is also important to distinguish commonhold from a structure many will already be familiar with – a Residents’ Management Company (RMC) that owns the Freehold. Whilst, leaseholders, as members of the RMC, collectively own the freehold, but each flat is still held on a lease, meaning the leasehold framework remains in place. In commonhold, there are no leases at all: ownership is freehold from the outset, governed by a single, standardised structure.
This leads to a broader, and still unanswered, question for the sector: how different will commonhold feel in practice compared to a well-run RMC block? In many cases, the day-to-day management may look similar, particularly where resident control is already effective. Whether commonhold represents a genuine step change, or simply formalises what strong RMC-led blocks already achieve, remains to be seen.
What is clear is that change is coming, with a growing emphasis on transparency, control and resident involvement.
At Burns Hamilton, we are already preparing for that future. Our teams have completed the Commonhold Course from The Property Institute to build a practical understanding of how the model will operate. Whatever your current setup, leasehold, share of freehold or RMC-led, we are ready to deliver what is needed.
If you would like advice on your building or support with your current property management arrangements, Burns Hamilton is here to help.
CONTACT
T. 01202 391663
E. admin@burnshamilton.co.uk
A. Hawthorn House, 1 Lowther Gardens, Bournemouth, BH8 8NF
