England and Wales | Commonhold
What Is Commonhold?
Commonhold is a way to own a flat with no landlord: each owner holds the freehold of their own unit, and a commonhold association owned by the unit-holders runs the shared parts. It has existed since the Commonhold and Leasehold Reform Act 2002, and the government plans to make it the default for new flats.
The short answer
- Each unit-holder owns the freehold of their unit. A commonhold community statement sets everyone's rights and duties.
- The commonhold association is a company limited by guarantee (£1 per member) with at least two directors; its name ends "Commonhold Association Limited".
- A commonhold needs at least two units.
- Converting from leasehold now needs the consent of the freeholder, every long leaseholder and their lenders.
- A draft Bill of January 2026 would lower that to 50% of leaseholders, and a consultation asked about simpler micro-commonholds of 4 units or fewer. None of this is law yet.
How commonhold works now
- Commonhold land is land whose freehold is registered as commonhold, run by a commonhold association, with a commonhold community statement (s 1).
- The statement must name at least two units, each defined by a plan (s 11).
- The directors make an annual estimate of the money needed, and each unit has a percentage share, all adding to 100% (s 38). Regulations may require reserve funds (s 39).
- Directors must use their powers to let each unit-holder enjoy their unit, and should prefer arbitration, mediation or conciliation to court (s 35).
- A home unit cannot be let for a premium or for more than 7 years (Commonhold Regulations 2004, reg 11).
- Parties must follow the statement's dispute procedure before legal action, except in an emergency or for an unpaid amount (GOV.UK).
Converting a leasehold building
Registering commonhold needs the consent of every registered freehold owner, every owner of a lease of more than 21 years, and every registered lender (s 3). GOV.UK: "Conversion currently requires the unanimous consent of the freeholder, all other leaseholders in the building and their lenders."
The reform plans
- 3 March 2025: the Commonhold White Paper set out a reformed commonhold model and the plan to make it the default tenure in England and Wales, with mandatory public liability insurance and reserve funds and a vote on the annual budget.
- 27 January 2026: a draft Commonhold and Leasehold Reform Bill was published. It would lower the consent needed to convert from 100% to 50% of leaseholders, ban leasehold for most new flats, cap ground rents at £250 a year and abolish forfeiture.
- 27 January to 24 April 2026: the "Moving to commonhold" consultation asked about micro-commonholds of 4 residential units or fewer, which could run with a single director instead of the current minimum of two. No government response was published when we checked.
- 13 May 2026: the King's Speech named a Commonhold and Leasehold Reform Bill.
- The government's guide says it intends the reformed model to be available "before the end of the Parliament".
England and Wales only. Scotland and Northern Ireland have their own law: GOV.UK says RTM companies and commonhold associations do not exist there. Law text read on legislation.gov.uk and guidance on GOV.UK on 31 October 2026.
Common questions
What is commonhold? +
A form of freehold ownership for flats and other units in a shared building. Each unit-holder owns the freehold of their unit, and a commonhold association owned by the unit-holders runs the common parts under a commonhold community statement.
What is the difference between commonhold and leasehold? +
With leasehold you own a lease of your flat for a set term and a landlord owns the building. With commonhold you own the freehold of your unit and the owners together, through the commonhold association, own and run the common parts.
What is a commonhold association? +
A private company limited by guarantee, £1 per member, whose members are the unit-holders. Its name ends "Commonhold Association Limited" and it has at least two directors.
What is a commonhold community statement? +
The rulebook for the commonhold. It sets each unit's percentage share of costs, the annual budget process and duties such as paying contributions, doing works, giving access and not causing nuisance.
Can a leasehold building convert to commonhold? +
Yes, but today it needs the consent of the freeholder, every long leaseholder and their lenders. The draft Bill of January 2026 would lower this to 50% of leaseholders.
Is leasehold being abolished? +
The government plans to ban leasehold for most new flats once a new commonhold framework is in place. As of our check on 31 October 2026, the Bill had been announced in the King's Speech but the reforms were not law.
What is a micro-commonhold? +
A term from the 2026 consultation for small commonholds, for example 4 residential units or fewer, which might run with a single director. It is a proposal only.
Can I rent out a commonhold flat? +
Yes, but a residential commonhold unit cannot be let for a premium or for more than 7 years, with a narrow exception for some leases that existed before conversion.
How many units does a commonhold need? +
At least two. The commonhold community statement must specify at least two units (s 11).
How are disputes settled in commonhold? +
Through the procedure in the commonhold community statement first, before legal action, except in an emergency or for an unpaid amount.
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