The negative impact of leasehold reform on property values

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Commonhold Reform: A Bold Shift in Flat Ownership – But at What Cost?

As the UK government pushes forward with reforms to make leasehold ownership “easier and cheaper,” industry experts are urging caution. Mark Wilson, director of MyLeasehold and member of ALEP, warns that while the Commonhold model promises transparency and fairness, it also shifts hidden costs directly onto flat owners.

Under leasehold, freeholders shoulder many risks and costs—from major repairs to long-term building maintenance. With Commonhold, that burden is redistributed to residents. Owners will be fully responsible for everything from lift failures to rising insurance costs, all of which will be visible in service charges and reserve fund contributions.

Wilson points out that this is not a free upgrade, but a structural reset. While more democratic, Commonhold demands long-term financial planning and cooperation among owners—something that may prove difficult in practice.

He suggests that property prices could adjust downward as buyers factor in the full cost of ownership, previously obscured under leasehold. But that’s not necessarily market failure; it’s transparency in action.

Ultimately, the Commonhold reform may represent a fairer ownership model—but not a cheaper one. As Wilson puts it, we’re about to find out whether the market can sustain this bold leap into a new era of flat ownership.