Propertymark backs move to commonhold
Propertymark has welcomed proposals from the Ministry of Housing, Communities and Local Government to phase out the sale of new leasehold flats in England and Wales, while warning that the transition to commonhold must be carefully managed to avoid market disruption and consumer confusion.
Responding to the UK Government’s consultation on “Moving to commonhold: banning leasehold for new flats”, Propertymark said reform of the leasehold system is long overdue and highlighted growing evidence that leasehold homes are increasingly difficult to sell.
The professional body, representing over 19,000 property professionals, cited findings from its 2018 “Leasehold: A Life Sentence” report showing 94 per cent of leaseholders regretted purchasing a leasehold property, while 93 per cent said they would not buy another leasehold home.
A further 2025 survey of Propertymark members found 76 per cent believe leasehold flats have become even harder to sell in the last two years.
Propertymark supports the UK Government’s proposed scope of the ban across all categories of new flats, including purpose-built developments, converted buildings and mixed-use schemes. However, it stressed that existing leasehold flats and developments already underway must be protected through sensible transitional arrangements.
The organisation warned that forcing existing leaseholders to convert to commonhold before selling could financially trap homeowners and reduce housing market mobility.
Propertymark also called for:
Mandatory regulation, licensing and qualifications for all property agents
Significant investment in HM Land Registry to support the new system
Industry-wide education on commonhold responsibilities and governance
Flexibility for residents to determine management structures within commonhold buildings
Clear guidance for mixed-use developments involving commercial tenants
The organisation said estate agents will play a critical role in ensuring compliance with the ban and helping consumers understand the new tenure model.
Timothy Douglas, Head of Policy and Campaigns at Propertymark comments:
“The current leasehold system often creates confusion, frustration and financial uncertainty for homeowners. Moving towards commonhold has the potential to modernise flat ownership and restore consumer confidence in the housing market.
“However, the UK Government must deliver the right reforms for existing leaseholders to provide confidence in the market, ensuring transparency over service charges and greater standards from property professionals involved.
“The transition must also be practical and proportionate. Existing leaseholders cannot be unfairly penalised, and the industry needs sufficient time, training and regulatory support to adapt successfully.
“Property professionals will be on the frontline of explaining these changes to buyers and sellers, which is why clear guidance, mandatory qualifications and robust regulation across the sector will be essential.”
Propertymark confirmed it is preparing extensive member support, including updated qualifications, training courses, webinars and compliance guidance ahead of any legislative implementation.
The organisation also backed a single implementation date for the ban on new leasehold flats, arguing this would reduce confusion for agents, developers and consumers alike.
While Propertymark supports professional managing agents being recommended for commonhold developments, it argued residents should retain the freedom to determine how their buildings are managed, particularly in smaller “micro-commonholds”.
The consultation follows publication of the Draft Leasehold and Commonhold Reform Bill earlier this year and forms part of the Government’s wider plans to make commonhold the default tenure for flats in England and Wales.
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