UK Government Proposes Ban on Leasehold Flats in Favor of Commonhold System

The proposed reforms aim to eliminate the leasehold system for new flats, granting homeowners more control over their properties through commonhold ownership.

The UK government has announced plans to ban leasehold ownership for new flats, transitioning to a commonhold system widely used in other countries.
Commonhold ownership allows flat owners to collectively own and manage the building, eliminating the need to pay ground rent or rely on third-party freeholders.
Critics of the leasehold system cite rising service charges, unfair ground rents, and limited homeowner control as key issues driving the push for reform.
The proposed changes will initially apply to new flats, while existing leaseholders may face challenges in converting to commonhold due to legal and financial complexities.
Freeholders and some industry groups argue that commonhold could impose greater financial and managerial responsibilities on residents, particularly in large or complex buildings.