Our latest research shows strong landlord backing for the government’s planned shift to commonhold, with the overwhelming majority believing it will deliver meaningful financial and operational benefits.
Of the landlords we have polled, 91% say they expect improvements under a commonhold regime, with almost half (46%) citing lower service charges as their primary motivation. A fifth (21%) say they are excited by the prospect of better-maintained buildings, which they believe would support higher achievable rents and stronger tenant retention. 11% highlight the potential for longer tenancies. Indeed, just 9% of respondents to our landlord survey – who between them own around 3,000 properties across England and Wales – said they could see no benefit at all from the proposed changes.
The message from landlords is clear, they think the wholesale adoption commonhold has potential. While many property investors are laser-focused on lower service charges, there is a smorgasbord of reasons to back the change to commonhold: well-maintained blocks as a route to higher rents and happier, longer-staying tenants being a key one.
The government’s March 2025 white paper confirmed plans to ban the sale of new leasehold flats and “reinvigorate” commonhold as the default tenure for new apartments. Ministers have described the current leasehold system – in which a third-party freeholder owns the building while leaseholders merely purchase the right to occupy their home for a fixed period – as an outdated “feudal” arrangement out of step with most developed countries.
So, this is the answer to landlords’ prayers? Well, yes and no. This is not necessarily a perfect solution.
First, we must not forget that commonhold is not new to the UK – it was introduced in 2002. While it already allows flat owners to collectively own and manage the freehold through a commonhold association, removing the freeholder entirely and giving residents direct control over service charges, maintenance and major works – it has rarely been used. Of course, making commonhold mandatory will reduce this barrier. But experience over the last 20 years suggests its successful adoption is not a foregone conclusion.
Second, our research explored the practical concerns that could hold landlords back from embracing commonhold. Worryingly for policymakers, almost half of the landlords we polled (49%) cited concerns over the risk of mismanagement by fellow commonholders. A similar proportion highlighted the challenge of securing 100% agreement among owners for decisions – a requirement that has historically hampered commonhold take-up. And just over a quarter of landlords (26%) admitted they may lack the necessary cash reserves to meet sudden calls for major works under a self-managed structure.
It’s no surprise that some landlords have concerns about collective decision-making and liquidity. These are legitimate hurdles that the government must address if commonhold is to become the success everyone wants it to be. Simplified governance rules, clearer reserve fund requirements and perhaps even mandatory sinking-funds could smooth the transition.
Third, 22% of our sample said their current freeholder already does a good job, reducing the incentive to switch. On the one hand, a fifth of the market is not exactly a ringing endorsement of the current system. On the other, that’s a sizeable chunk of the market may well think “it ain’t broke, don’t fix it”.
There are other misgivings, too, that make things looks slightly less positive. Previous Landbay research has shown scepticism about effective execution: almost two-thirds (64%) of landlords doubt the government can deliver meaningful leasehold reform by the end of this parliament.
Despite these reservations, the overall mood among the landlords polled remains one of cautious optimism. Our latest findings suggest that, while doubts persist around the details and delivery, there is strong sectoral support for the direction of travel. Afterall, for buy-to-let investors, commonhold could be transformative. Lower running costs, higher rents from better buildings, and the removal of ground rent and escalating service-charge scandals – these are powerful incentives.
If the legislation is practical and is implemented quickly, we could finally see the sort of ownership model the UK has needed for decades. With the Leasehold and Freehold Reform Act already on the statute book and further commonhold legislation promised, 2026 is shaping up to be a pivotal year for the private rented sector. Our research indicates that most professional landlords are ready to back the change – provided the final framework tackles the very real concerns that still linger.
