New research from Landbay shows that close to nine in ten landlords are optimistic that commonhold could help reduce service charges while improving how residential blocks are managed.
Landbay’s survey found that almost half of participating landlords, or 46%, are hoping for lower service charges under a commonhold system. Just over a fifth, or 21%, said they are anticipating better maintained buildings and the chance to achieve higher rents as a result. One in 9 landlords, or 11%, believe commonhold would support longer tenant retention, while one in 8, or 12%, cited a range of other reasons for backing the model.
Although 91% of respondents said they hoped for improvements if commonhold is adopted, 9% felt there would be no benefit. These differing views reflect an ongoing debate about how effectively the new structure could replace leasehold arrangements.
“It’s clear where landlord preferences lie: nine in ten landlords believe commonhold could slash service charges and deliver blocks that actually stay in top shape,” said Rob Stanton, sales and distribution director (pictured). “Nearly half are banking on lower bills, while one in five see better-maintained buildings unlocking higher rents and happier tenants. The Government has lit the fuse; now landlords want them to deliver.”
Previous polling by the company showed that nearly two-thirds of landlords, or 64%, do not believe the Government could achieve leasehold reform by the end of this parliament. This reflects widespread doubt about the speed and scale of proposed changes.
A white paper published in March stated that the sale of new leasehold flats would be banned and commonhold “reinvigorated” with a new legal framework. In the same month, the government said it would end the sale of new leasehold homes by the close of this parliament, describing the shift as the conclusion of a centuries-old “feudal system”. Ministers said their aim is to align the UK with commonhold systems used internationally, where owners hold a share of and exert control over the buildings in which they live.
Under the existing leasehold model, freeholders own the building and leaseholders purchase the right to live in their property for a set number of years. The government’s proposals would fundamentally change this arrangement.
Landbay also asked landlords whether practical barriers might deter them from embracing commonhold. Almost half, or 49%, pointed to concerns about poor management by commonholders, while the same proportion worried about the need for unanimous agreement among leaseholders. More than a quarter, or 26%, said they lacked the liquidity required for the model, and just over a fifth, or 22%, felt their current freeholder provided effective management.
The research gathered responses from landlords controlling approximately 3,000 properties across England and Wales.
