Commonhold hopes rise among landlords for cheaper charges and better-run blocks

Landlords are pinning their hopes on commonhold to cut rising costs and improve building management, research from Landbay reveals.

It found that nearly half of respondents (46%), said they were banking on lower service charges if commonhold is introduced.

Many see the current model as bloated and opaque yet believe a reset could shift control back towards those who own homes in a building.

Just over a fifth of landlords (21%), expect that better management under commonhold could lift standards and allow them to command stronger rents.

Lower service charges

The lender’s sales and distribution director, Rob Stanton, said: “It’s clear where landlord preferences lie: nine in 10 landlords believe commonhold could slash service charges and deliver blocks that actually stay in top shape.

“Nearly half are banking on lower bills, while one in five see better-maintained buildings unlocking higher rents and happier tenants.”

He added: “The government has lit the fuse; now landlords want them to deliver.”

Help retain tenants

The Landbay survey also found that one in nine landlords believe the change could help them hold on to tenants for longer.

They argue that if blocks are run more smoothly, with fewer disputes and delays over essential works, renters may be more inclined to stay put.

While 91% expressed hope for improvements, a minority saw no benefit at all, either because they regard the system as workable or fear disruption from any large-scale shift in ownership structure.

When the government plans were published, ministers described the proposed ban on new leasehold homes as the final chapter for a ‘feudal system’ that has shaped English property law for centuries.

They claimed the new approach would align the UK with systems common in many other countries, where owners collectively control their building rather than relying on a freeholder.

Current system criticised

Under today’s leasehold model, freeholders hold the building while leaseholders simply purchase the right to occupy a flat for a set period.

The arrangement has long been criticised for high fees, poor transparency and limited accountability, and the survey suggests landlords feel many of the same pressures that leaseholders face.

However, nearly half of landlords worry about the potential mismanagement by fellow owners.

A similar proportion feared the hurdle of obtaining unanimous consent among leaseholders, something the system currently requires.

Financial concerns also loomed large, with more than a quarter admitting they lacked the liquidity to make the switch.

For some, the status quo still works and just over a fifth said their existing freeholder managed their building effectively.