Buying flats in England and Wales? What you need to know about the move to commonhold

If you are investing in flats in England or Wales, you may be wondering what the Government’s proposed move away from leasehold means for you.

While change is coming, there is no need for alarm.

In fact, for many investors, the move to commonhold will actually be better for your finances.

From leasehold to commonhold

Leasehold has long been the dominant form of flat ownership in England and Wales.

It does, however, come with its own set of issues, including expiring terms, ground rents, service charges, and often limited control for the owner.

The Government now intends to phase out this model.

It has confirmed plans to ban the sale of new leasehold flats and to make commonhold the standard form of ownership instead.

Commonhold gives you freehold ownership of your flat, with no expiry date.

Owners also share responsibility for communal areas through a special company known as a commonhold association, meaning there is no third-party landlord.

This model is already widely used internationally.

The Commonhold White Paper reforms

The Commonhold White Paper, published in March 2025, outlines several key financial reforms to be aware of.

Selling new leasehold flats will be banned.

A more flexible structure will allow for shared ownership, Islamic finance (home purchase plans), and different uses within a block (e.g. shops and flats).

How the move to commonhold could is beneficial for you

The move to commonhold might sound dramatic, but for investors, it is a move towards clarity, permanence and global familiarity.

Here is why it could strengthen and not weaken your investment strategy:

• You can still buy leasehold flats – Leasehold remains legal for now. Even when the ban is introduced, it is likely that transitional arrangements and limited exemptions will apply.
• Commonhold offers clearer long-term value – With no ground rent, no lease expiry, and transparent management rules, commonhold offers a simpler, perpetual form of ownership.
• Existing blocks won’t change overnight – Any move from leasehold to commonhold will require a formal process and agreement from most flat owners. It won’t be imposed retrospectively.

For property investors, developers, and landlords seeking new properties, these reforms may actually be better for your finances.

Commonhold ownership offers permanence, control, and predictability – all of which will ultimately benefit your bottom line.

Thinking about purchasing a flat now or in the future? Contact Grunberg & Co today for objective financial advice.