"Whether under leasehold or commonhold, successful agents will be those who bring professionalism, clarity and integrity to their work"
- Robert Poole - Glide Property Management
The government’s ambition to end leasehold for most residential properties has put commonhold back into the spotlight. First introduced in 2002, commonhold offered a resident-led alternative to traditional leasehold ownership. However, legal and commercial complexity stalled adoption. Two decades later, policymakers are taking another look.
At the heart of commonhold is the principle of shared ownership and control. Instead of leaseholders and landlords, you have unit owners and a commonhold association. It’s more democratic and arguably more transparent. But the shift from landlord-controlled block management to resident-controlled governance raises major operational questions for managing agents.
Under commonhold, management responsibilities sit with the association, often formed of volunteer directors. These individuals will have varying levels of experience and engagement, which can create inconsistency in decision-making. Managing agents are therefore likely to take on a more advisory role, guiding clients through budgeting, repairs, compliance, and governance.
This brings new challenges. Without leasehold covenants or landlord enforcement mechanisms, agents will need to rely on by-laws and internal processes to handle non-compliance, late payments, or resident disputes. The absence of forfeiture, while fairer in principle, means arrears recovery will need to be managed through alternative legal routes. This increases the importance of having strong financial systems and well-documented governance policies.
Developers are another part of the equation. Many remain hesitant to adopt commonhold due to uncertainty over resale values, funding models, and market familiarity. Legal reforms currently under consultation aim to address some of these issues, such as voting thresholds, reserve fund flexibility and dispute resolution procedures, but until there is a clear commercial pathway, commonhold adoption is likely to be gradual.
For property managers, the key is preparation. Whether managing a new-build scheme or supporting an existing block converting from leasehold, the expectations of residents will be broadly the same. They want clean, safe, well-run buildings. They want value for money. And they want clear, respectful communication. If anything, commonhold increases the visibility and accountability of managing agents.
Commonhold also encourages a cultural shift, from enforcement to engagement. Managing agents must become facilitators, educators, and collaborators. The association structure means that agents will often work directly with committees or boards, many of whom will have a deeper emotional investment in the property. This can create both opportunities and challenges when it comes to setting priorities and managing expectations.
Technology will be critical in making this work. Digital portals, shared dashboards, and transparent workflows can help commonhold associations understand their responsibilities and track progress. They can also reduce friction by making information readily accessible to all owners.
Ultimately, while the legal framework is changing, the fundamentals of good management remain constant. Whether under leasehold or commonhold, successful agents will be those who bring professionalism, clarity and integrity to their work. Commonhold may redistribute power, but it also increases the need for trusted, competent guidance.
The emergence of commonhold is not a threat; it’s a chance for the industry to modernise, evolve, and reaffirm its value.
