Industry body warns commonhold changes could increase disputes, create deadlock, undermine lender confidence and introduce complex new legal structures.
29th Jan 20260 633 1 minute read Simon Cairnes
The long-overdue Draft Commonhold and Leasehold Reform Bill has been welcomed by the Society of Licensed Conveyancers (SLC), which has warned that such a large-scale transition to commonhold carries significant legal and practical risks if carried out too quickly.
The industry body says measures such as capping ground rents, abolishing forfeiture for long residential leases and reforming estate rentcharge enforcement “represent meaningful progress and will provide tangible benefits to consumers”.
Lack of evidenceHowever, it expressed serious concerns about the Bill’s ambition to make commonhold the default tenure for new flats and to accelerate the conversion of existing leasehold buildings, without sufficient evidence that the system is ready to operate at scale.
“Licensed Conveyancers are the professionals responsible for delivering property law reform on the ground, and the SLC cautions that commonhold remains largely untested in England and Wales.
“Unlike leasehold, commonhold places the ongoing management, financial decision making and governance of buildings directly in the hands of homeowners, many of whom will have little experience of the legal and administrative responsibilities involved.”
The SLC added that this risks exposing consumers to new forms of dispute, delay and financial uncertainty, with greater scope for deadlock between owners, increased reliance on tribunals and limited safety nets when relationships within a building break down.
Without clear and consistent lender acceptance, there is a real risk that commonhold properties could become harder to sell or remortgage.”
Mortgage lending is another unresolved issue, with the SLC warning: “Without clear and consistent lender acceptance, there is a real risk that commonhold properties could become harder to sell or remortgage, undermining the very homeownership stability the reforms seek to promote.”
It argues that the Bill introduces a step change in complexity, including new title structures, Commonhold Community Statements replacing leases, automatic Land Registry changes and transitional arrangements that increase the risk of error, delay and consumer confusion.
The Society is therefore calling on the Government to ensure reform is introduced at a pace that prioritises consumer protection and market stability, with clear documentation, robust transitional safeguards and meaningful engagement with the profession.
Tagscommonhold leasehold 29th Jan 20260 633 1 minute read Simon Cairnes Share Facebook X LinkedIn Share via Email