Leasehold Flat Ban Is On Its Way

For decades, buying a flat in England and Wales has meant buying a lease, not the home itself. The word “ownership” has always come with an asterisk,  one that meant temporary, conditional, and often expensive. But that could all be about to change.

The government’s long-awaited reforms to leasehold ownership are gathering real momentum. With a Commonhold White Paper expected in 2025 and a Leasehold and Commonhold Reform Bill likely before the end of the year, we may finally be seeing the beginning of the end for leasehold flats.

In simple terms, the ban on selling new leasehold flats is on its way.

The Move Towards Commonhold

At the heart of this revolution is a very different model of homeownership,  commonhold. If leasehold is about owning a property for a fixed number of years and paying ground rent to a freeholder, commonhold flips that idea on its head.

Under the commonhold system, there are:

• No leases.

• No freeholders.

• And no one with power over your property except you and your fellow flat owners.

Each flat owner holds the freehold of their own unit and automatically becomes a member of a Commonhold Association,  a company collectively responsible for running the building. It’s a democratic, transparent model where everyone has a voice.

And yes, it already exists in law. The idea was introduced back in 2002, but it never took off, with fewer than 20 commonhold developments across the whole of the UK.

Why Didn’t Commonhold Take Off Before?

So, if the model sounds so fair and straightforward, why didn’t it work the first time?

The Law Commission’s 2020 report on commonhold didn’t mince its words, the system was too rigid, too unfamiliar, and frankly, overshadowed by the deeply entrenched leasehold model. Developers preferred leasehold because it generated steady income from ground rents. Lenders were cautious because they didn’t fully understand commonhold. And conveyancers well, they stuck to what they knew.

In short, commonhold was technically available, but practically invisible.

What’s Changing Now?

Fast forward to today, and the mood has shifted dramatically. Public pressure around unfair leasehold practices ground rents, service charge disputes, and the nightmare of forfeiture has created the perfect storm for reform.

The government’s Commonhold White Paper (2025) outlines a much more workable version of commonhold. Here’s what it looks like:

• A clear rule book: Each building operates under a Commonhold Community Statement (CCS), setting out everyone’s rights and responsibilities think of it as a constitution for your building.

• Reserve fund planning: Every commonhold will have a long-term maintenance fund, reviewed every 10 years, to prevent nasty financial surprises.

• Democratic finance: Major spending decisions are voted on by unit owners so no more mysterious “build shocks” or hidden costs.

• No forfeiture: You can’t lose your home over a disagreement or a late payment.

In other words, the goal is simple, ownership without exploitation.

The Big Shift And How We’ll Get There

The key question now is: how do we break the cycle?

The government plans to make conversion from leasehold to commonhold easier, with a streamlined legal process and financial incentives for early adopters. Developers of new flats will be required to use commonhold rather than leasehold structures.

A new Commonhold Council will be established to guide implementation, bringing together lawyers, lenders, surveyors, and homeowners to ensure the model works in practice.

And perhaps most importantly, the government has confirmed that a draft Leasehold and Commonhold Reform Bill will be introduced before the end of the year paving the way for a ban on the sale of new leasehold flats.

That’s a huge deal.

Why Should Homebuyers Care?

If you are planning to buy a flat in the next few years, this is a major turning point. Commonhold means you will own your home outright, not just for 99 or 125 years, but forever.

You will also have:

• A say in how your building is managed.

• Transparency over service charges and spending.

• Predictable costs thanks to reserve fund planning.

• And no ticking time bomb of a lease that shortens each year.

In short, you will be buying true ownership. It’s what homebuyers have been asking for all along a fair system where ownership means exactly what it says on the tin.

What Does It Mean for Conveyancers?

Now, let’s be honest for conveyancers, this isn’t just a small adjustment. It’s a complete rewrite of the rulebook.

Under the new regime, the traditional leasehold checks ground rent clauses, service charge schedules, and forfeiture risks will give way to a new focus:

• Reviewing the Commonhold Community Statement and Commonhold Association’s governance.

• Understanding the financial structure and reserve fund of the building.

• Advising clients on voting rights, dispute resolution, and conversion processes.

• Liaising with lenders who’ll need assurance on title security and enforcement.

It’s a learning curve, no doubt but it’s also an opportunity for conveyancers to lead the change.

Those who get comfortable with commonhold early will become the go-to experts when the new model takes hold.

The Bottom Line: Are We Ready?

The writing is on the wall. Commonhold is not a distant theory anymore it’s the government’s chosen path forward.

With the ban on leasehold flats on its way, and the Leasehold and Commonhold Reform Bill around the corner, the time to prepare is now.

For homebuyers, it means a fairer, simpler way to own property.

For conveyancers, it means adapting, learning, and getting ready to operate in a new legal world.

So are we ready for it? Because whether we are or not, commonhold is coming.