Quick Answers
What did the April 2026 consultation close on?
A detailed set of government proposals for reforming commonhold to make it a workable tenure for new-build flats and, eventually, a viable conversion route for existing leaseholders. The consultation covered the commonhold association structure, conversion mechanics, mortgage lender requirements, and the path to making commonhold the default for new residential buildings.
Is commonhold happening soon?
No primary legislation implementing a reformed commonhold has been introduced as of May 2026. The consultation responses now need to be analysed, policy decisions made, legislation drafted, and parliamentary time found. A realistic assessment: new-build commonhold as default is several years away. Conversion of existing blocks is more complex still.
Should RTM directors be doing anything differently right now?
No. The consultation is about a future tenure system. The compliance obligations for existing leasehold blocks are unchanged. RTM directors should monitor developments and consider conversion when the framework is clearer — but there is nothing to act on today in response to the consultation closing.
The short answer: Commonhold is the government's long-stated alternative to leasehold for flat ownership — a system where unit owners own their properties permanently and collectively control the building, with no freeholder. It has existed in English law since 2002 and has been used in fewer than 30 developments in twenty-four years, because the original legislation was unworkable. The April 2026 consultation proposes a redesigned framework that addresses most of the original barriers. But between consultation and working commonhold is a legislative journey that has not yet started, and a mortgage market that needs convincing.
The honest assessment: commonhold matters, and the consultation is a genuinely significant step. But for leaseholders and RTM directors managing blocks today, the leasehold compliance environment — Building Safety Act, service charges, Renters' Rights Act, Section 20 — is the world they are operating in now, and that is not changing because a consultation has closed.
Key Takeaways
Commonhold has existed since 2002 and has barely been used
The Commonhold and Leasehold Reform Act 2002 created commonhold as a tenure in English law. Fewer than 30 developments have used it in twenty-four years. The reasons are structural: the original legislation required unanimous consent for conversion, did not adequately address mortgage lenders' concerns, and left too many governance questions unanswered. The 2026 consultation proposals are designed to fix this — not to introduce commonhold for the first time.
The consultation proposes commonhold as default for new-build — not compulsory for existing blocks
The government's direction is that commonhold should become the default tenure for new residential buildings once legislation is in place. This would prevent the creation of new leasehold flats. It does not propose forcing existing leasehold blocks to convert. Conversion would be voluntary, subject to a threshold consent requirement and lender agreement.
Mortgage lenders are the critical gating factor
In 2002, most mortgage lenders would not lend on commonhold properties because the legal framework was unfamiliar and the governance arrangements insufficiently clear. If the new framework does not secure lender acceptance, commonhold will again stall regardless of legislative quality.
The commonhold association replaces the freeholder — and its governance matters
In commonhold, the freeholder is replaced by a commonhold association — a company owned and controlled by the unit owners. The association makes decisions about the building, sets the commonhold community statement, manages the building, and appoints contractors.
Conversion from leasehold to commonhold is technically complex
Converting an existing leasehold block to commonhold requires resolving multiple overlapping interests: existing leases, mortgage charges on each flat, the freeholder's freehold interest, any ground rent streams, and any outstanding service charge disputes.
The consultation response will determine how much of this becomes law — and when
A consultation is not legislation. The government will now analyse the responses, make policy decisions about which proposals to take forward, draft legislation, and introduce it to Parliament.
What Commonhold Actually Is
Commonhold is a form of flat ownership that removes the freeholder from the equation entirely. Under commonhold, each flat owner owns their unit outright — not on a declining lease, but permanently. The common parts of the building are owned collectively through a commonhold association, which is a company whose members are the unit owners.
The structural appeal of commonhold is clear: it eliminates the freeholder as an actor with interests separate from and potentially opposed to the people who live in the building.
Why Commonhold Has Been Almost Entirely Unused Since 2002
Commonhold's failure to take hold after 2002 was not a failure of the concept — it was a failure of the implementation.
- Mortgage lenders refused to lend on commonhold. Without mortgage availability, buyers could not purchase commonhold units and developers could not sell them.
- Conversion required unanimous consent. Every leaseholder in a block had to agree to convert to commonhold.
- The governance framework was underdeveloped. The 2002 Act did not provide sufficient detail on how commonhold associations should be run.
- New-build developers had no incentive to use it. Commonhold offered none of the income streams developers could extract from leasehold structures.
What the April 2026 Consultation Proposed
A redesigned commonhold association framework
The consultation proposes a new governance model for commonhold associations — clearer rules on decision-making, dispute resolution, amendment of the community statement, and the association's relationship with managing agents.
Consultation closedCommonhold as default for new residential buildings
The proposal that commonhold should become the default tenure for new-build flats is the most significant structural reform under discussion.
Consultation closedA voluntary conversion route for existing blocks
The consultation proposes a conversion mechanism for existing leasehold blocks — allowing leaseholders to vote to convert to commonhold, subject to a high-consent threshold and lender agreement.
Consultation closedAddressing mortgage lender concerns directly
The consultation proposes specific protections aimed at securing lender acceptance — including rules around default, insolvency, and mortgage security.
Consultation closedCommonhold community statement — standardised core terms
The consultation proposes a standardised core commonhold community statement with mandatory provisions and optional provisions that associations can adapt.
Consultation closedMixed-use and complex building provisions
The consultation proposes frameworks for layered commonhold and for the relationship between residential unit holders and commercial unit holders in mixed-use developments.
Consultation closedThe proposals summarised above should be checked against the final government response before publishing live, in case material announcements have been made since drafting.
The Conversion Question: Can Existing Leaseholders Switch to Commonhold?
This is the question that most existing leaseholders and RTM directors actually want answered — and the honest answer is: not soon, and not easily, even if the legislation passes.
- Securing agreement from all or a very high proportion of leaseholders
- Securing consent from all mortgage lenders holding charges over individual flats
- Agreeing compensation for the freeholder's freehold interest
- Resolving any outstanding ground rent arrears or service charge disputes
- Drafting the commonhold community statement for the specific building
- Registering the commonhold with HM Land Registry
A Realistic Timeline
Law Commission report published
The Law Commission's report on commonhold reform set out the problem analysis and reform recommendations that the consultation is built on.
Leasehold and Freehold Reform Act 2024
The 2024 Act advanced wider leasehold reform but did not itself implement a new commonhold framework.
Consultation closes — government analyses responses
The consultation deadline has passed. The government now has to decide which proposals to take forward and when to legislate.
Primary legislation introduced
If government moves quickly, a Commonhold Reform Bill could be introduced to Parliament in 2027, although that would still be an optimistic timetable.
New-build commonhold as default — if legislation passes
Even if legislation arrives quickly, practical commencement and market adjustment would likely mean 2028 or later before commonhold starts operating as the default for new-build flats.
What This Means for Leaseholders and RTM Directors Right Now
The honest answer is: not much has changed in your day-to-day management position because a consultation has closed.
| If you are... | What to Do — or Think About |
|---|---|
| An RTM director managing an existing block | Nothing changes operationally today. Your compliance obligations remain the same. Monitor developments, but there is no action required now. |
| A leaseholder considering whether to enfranchise | Do not delay enfranchisement on the basis that commonhold is coming. The legislative timeline is still years away at minimum. |
| A leaseholder buying a new-build flat | For the foreseeable future, new-build flats will continue to be sold as leasehold. Check the lease terms carefully. |
| A developer or investor in residential property | The direction of travel is clear. Firms that understand commonhold governance early will be better positioned when the framework eventually arrives. |
The commonhold consultation is a genuine step forward. But the lesson of 2002 is that good proposals do not automatically produce a working tenure. The mortgage lender question remains the key issue.
For the broader reform context, see Commonhold and the Leasehold Reform Bill 2026 and What Is Commonhold?.
Frequently Asked Questions
Commonhold is a form of flat ownership where each unit owner owns their property permanently and jointly owns the common parts through a commonhold association they collectively control. There is no freeholder.
The consultation proposes a voluntary conversion route — not compulsory conversion. In practice, conversion is still likely to be complex and uncommon in the short to medium term.
No primary legislation implementing a reformed commonhold framework has been introduced as of May 2026. Realistically, 2028 is the earliest plausible operational date if legislation moves quickly.
For most RTM directors managing existing leasehold blocks, the immediate practical impact is minimal. Your current compliance obligations remain unchanged.
Structurally, commonhold removes several problems leasehold creates. The trade-off is that owners collectively take on more direct governance responsibility for the building.
Managing a leasehold block while watching the reform horizon?
Whatever happens with commonhold, the compliance environment for existing leasehold blocks is demanding. Neon manages blocks across East London and Essex for RTM companies and freeholders who want compliance done properly.
See how Neon manages blocks →