The Leasehold and Commonhold Reform Bill represent another step in the government’s ongoing plans to reshape how residential buildings are owned and managed.
For leaseholders, RMC and RTM Directors, and those considering exercising greater control over their building, the proposals are understandably generating questions.
Some changes will take time to work through Parliament and into practice, but understanding the direction of travel is important. It allows boards, residents and property professionals to prepare rather than react.
Here are ten key things worth understanding about the proposed reforms and what they may mean in practice.
1. The direction of travel is towards greater leaseholder control
One of the central themes of the reform programme is increasing control for leaseholders over the buildings they live in.
This includes making it easier for leaseholders to take ownership of their building, extend leases or move towards alternative ownership models such as commonhold.
For resident directors, this reinforces the importance of strong governance. Where residents take greater responsibility for managing their building, clear processes and professional support become even more important.
2. Commonhold is being positioned as a long-term alternative
The Bill places renewed emphasis on commonhold, a system where owners hold the freehold of their individual property while collectively owning and managing shared areas through a commonhold association.
Commonhold has existed in legislation for some time but has been used relatively rarely. The reforms aim to make it more workable and more attractive for developers and homeowners.
For existing leasehold buildings, conversion to commonhold would require careful planning and agreement among leaseholders.
It is not something that happens automatically, but it is likely to become a more prominent option in the future.
3. Lease extensions are expected to become simpler
Another focus of reform is making lease extensions more straightforward for leaseholders.
Extending a lease can currently be complex, expensive and time consuming. The reforms are intended to simplify the process and make it more accessible.
For leaseholders this provides greater long-term security. For resident management companies, it may result in more conversations around lease length, enfranchisement and building ownership structures.
4. Greater transparency around costs and charges
Transparency is a recurring theme in leasehold reform discussions.
Leaseholders are increasingly expecting clear explanations around how service charges are spent, how contracts are procured and how decisions are made.
Many RMC and RTM Directors already work hard to maintain that transparency. The reforms reinforce the importance of good record-keeping, clear communication and structured decision-making.
These practices help protect both directors and leaseholders.
5. Professional management remains essential
Greater resident control does not remove the complexity of managing residential buildings.
Buildings still require compliance oversight, financial management, contractor procurement, insurance placement and ongoing maintenance planning.
For many resident directors, the reforms highlight the importance of having a knowledgeable managing agent who can guide the board through legal responsibilities and operational decisions. You can read our resource guide here about what a managing agent does.
6. Governance expectations for resident directors may increase
As leaseholders gain more influence over how buildings are managed, expectations around governance are also likely to increase.
Directors of RMC and RTM companies are responsible for significant decisions, including budgets, contracts and compliance matters.
Maintaining clear records, documenting decisions and ensuring conflicts of interest are declared are all part of responsible stewardship.
Many directors take on these roles voluntarily, which makes professional guidance even more valuable. You can read our blog here about the role of a resident management company director.
7. Communication with residents will become even more important
Changes to leasehold law often create uncertainty among residents.
Leaseholders may hear headlines about reform and understandably want to know what it means for their own building.
Resident directors who communicate clearly and regularly are better placed to manage expectations and maintain confidence within the block.
Providing factual updates and explaining what is changing, and what is not, can reduce confusion. Our blog on effective communication may be useful to you.
8. Some changes will take time to implement
While the reform agenda is ambitious, many elements will take time to move from legislation into day-to-day practice.
Secondary legislation, regulatory guidance and industry adaptation all play a role in how reforms ultimately operate.
For boards and leaseholders, the key message is not to assume that all changes happen immediately. Instead, it is sensible to stay informed and seek advice where needed.
9. Existing leasehold buildings will still need careful management
Even as the system evolves, the majority of existing residential blocks will remain leasehold structures for some time.
Maintenance responsibilities, compliance obligations and financial planning will continue regardless of wider legislative change.
Resident directors therefore still need to ensure that the fundamentals of building management remain strong.
This includes planned maintenance, clear budgeting and responsible contractor procurement.
10. Preparation and professional support will help buildings navigate change
Legislative change often brings opportunity as well as uncertainty.
For some buildings, reforms may prompt conversations about ownership structures, governance arrangements or future planning.
Having access to professional advice can help resident directors and leaseholders explore those options calmly and sensibly.
How JMJ Asset Management can Hhlp
At JMJ Asset Management, we work closely with resident directors, leaseholders and property owners to ensure residential buildings are managed responsibly and transparently.
As the leasehold landscape evolves, our role is to provide clear guidance, practical support and structured management so that boards can focus on making informed decisions.
This includes:
- Supporting RMC and RTM Directors with governance and compliance
- Providing clear financial management and service charge transparency
- Managing contractor procurement and planned maintenance
- Helping residents understand their responsibilities and options
- Keeping clients informed about legislative developments that may affect them
Leasehold reform will continue to develop over the coming years, and staying informed will help boards and residents navigate those changes with confidence.
For many buildings, the most important step is ensuring that the fundamentals of good management remain strong.
If you would like to discuss how the reforms may affect your building, or how we can support your board, the team at JMJ Asset Management is always happy to help.
