And the honest answer is, for most existing buildings, not a great deal immediately.
But it is still worth understanding, because it helps you make sense of where things may be heading over time.
What is commonhold, in simple terms?
Commonhold is a form of ownership where each flat owner owns their property outright, with no lease attached.
There is no lease term counting down, no ground rent, and no freeholder in the traditional sense.
Instead, the building is owned and managed collectively by the flat owners through a company, often referred to as a commonhold association.
That association is responsible for maintaining the building, managing finances and making decisions, much like an RMC or RTM company does now.
Why is it being talked about again?
Commonhold isn’t new. It’s been part of legislation for some time.
The difference now is that the government is actively looking at how it could be used more widely, particularly for new developments.
The intention is to create a system where flat owners have more control and fewer long-term financial surprises.
That’s why it’s often mentioned alongside leasehold reform.
What does commonhold mean for existing blocks?
This is where expectations need to be managed.
For most existing buildings, the structure in place will remain leasehold for the foreseeable future.
Moving from leasehold to commonhold is not something that happens automatically. It would require agreement from the majority of leaseholders and a clear legal process to convert.
In practice, that can be complex.
You may have:
- different lease lengths
- varying financial positions
- differing views between leaseholders
- lender involvement
All of these factors make conversion possible in theory, but challenging in reality.
It may feel familiar in some ways
For many RMC and RTM Directors, the idea of commonhold can sound quite familiar.
That’s because a lot of the responsibilities already sit in a similar place.
You are already:
- making decisions about maintenance
- managing budgets
- instructing contractors
- acting in the interests of all residents
The difference is more about the legal structure behind it, rather than the day-to-day responsibilities.
If you’ve read our guide to understanding the role of an RMC Director, you’ll recognise that many of those responsibilities would still exist in a commonhold setting.
Control comes with responsibility
One of the reasons commonhold is seen as attractive is the idea of greater control.
But with that control comes responsibility.
Decisions still need to be made. Maintenance still needs to be carried out. Budgets still need to be set and managed.
The same challenges can still arise:
- differing opinions between residents
- decisions around cost versus quality
- long-term planning versus short-term fixes
We explored this further in our article on how to handle differing opinions on a resident board, which looks at how those conversations can be managed constructively.
Good management will still matter
This is probably the most important point.
Whether a building is leasehold, RTM, RMC or commonhold, the quality of management still plays a significant role in how the building functions.
Buyers, lenders and residents will still look at:
- how well the building is maintained
- how finances are managed
- how clearly decisions are communicated
We touched on this in our article What Happens Behind the Scenes in Block Management, which highlights the amount of work that goes into keeping a building running properly.
The structure may evolve, but the fundamentals remain the same.
It’s not a quick fix
There is sometimes an assumption that commonhold will solve the challenges associated with leasehold.
In reality, it changes the framework, but it doesn’t remove the need for decision-making, communication or responsibility.
Buildings still require:
- ongoing maintenance
- compliance oversight
- financial planning
- structured governance
The difference is that these responsibilities sit more directly with the owners themselves.
So what should you be doing now?
For most existing blocks, the focus does not need to shift dramatically.
The most practical steps are to:
- understand how your building is currently structured
- ensure your management processes are strong
- maintain clear financial planning
- communicate openly with residents
If commonhold becomes more widely used in the future, buildings that are already well managed will be in a much stronger position to consider their options.
Looking ahead
Commonhold is likely to become a more prominent part of the conversation over the coming years, particularly for new developments.
For existing buildings, it is something to be aware of rather than something that requires immediate action.
Understanding how it works, and how it compares to your current structure, helps you stay informed and prepared.
How JMJ Asset Management can help
At JMJ Asset Management, we support RMC and RTM Directors in managing their buildings in a structured, transparent and practical way.
While the legal landscape may evolve, our focus remains the same. Helping clients make informed decisions, manage their buildings responsibly and maintain confidence within their communities.
If you would like to talk through how your building is structured, or how future changes may affect you, we are always happy to have a conversation.
