The UK Government plans to abolish leasehold ownership for flats in England and Wales, replacing it with commonhold as the standard form of ownership. Following the Leasehold and Freehold Reform Act (May 2024), which banned leasehold for new houses, the upcoming Leasehold and Commonhold Reform Bill will prohibit new leasehold flats and promote commonhold ownership. Commonhold allows flat owners to collectively manage their buildings, eliminating ground rents and giving them direct control over costs. Property professionals and managing agents will need to adapt to this new system, which changes how flats are owned, managed, and sold.
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