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Commonhold's Second Act: What the Government's Long-Range Plan Means for Existing RMCs

Residentive Editorial 14/09/2026 4 min read

The UK government's renewed commitment to commonhold isn't a sudden overhaul — it's a long-term shift that reshapes the future of block management, with real implications for existing RMCs. Here’s what’s changing, and when.

Reviewed by Residentive EditorialPublished 14/09/2026

Featured image for industry insight for Residentive: Commonhold's Second Act: What RMCs Need to Know — The UK government's renewed commitment to commonhold isn't a sudden overhaul — it's a long-term…

The UK government’s renewed focus on commonhold is not a policy pivot but a strategic repositioning — a 'second act' for a tenure model long sidelined. While no immediate legislative wave is expected, the government has confirmed it will bring forward further legislation, with a clear emphasis on long-range planning rather than urgent reform. For existing RMCs, this signals a structural shift: commonhold isn't just a future possibility, but the intended default path for new developments and, eventually, a viable alternative for existing leasehold blocks.

Key takeaways

  • The government has formally committed to advancing commonhold reform, with legislation expected to be introduced in the next parliamentary session — not sooner.
  • Commonhold is now the preferred tenure model for new residential developments, per MHCLG guidance issued in 2023.
  • Existing RMCs are not required to convert immediately, but are being positioned as future-ready through evolving regulatory expectations.
  • The timeline for major legislative changes remains unconfirmed, with the government stating reforms are 'phasing in' over a 5–7 year window.
  • The focus is on enabling voluntary conversion, not forcing it, with support mechanisms under development.

The Shift in Government Priorities

Commonhold, first introduced in the Commonhold and Leasehold Reform Act 2002, has remained a niche option — used in only around 1% of new residential builds. But recent policy signals, including the 2023 MHCLG consultation and the 2024 Leasehold and Freehold Reform Act (LAFRA), mark a turning point. The government now explicitly identifies commonhold as the 'preferred future tenure' for residential property, citing transparency, long-term sustainability, and resident control as key advantages over leasehold.

This isn't a rushed reform. The Department for Levelling Up, Housing and Communities (DLUHC) has stressed that the approach is 'long-range' and 'non-urgent', allowing time for stakeholder engagement, technical design, and pilot programmes. The absence of a fixed launch date reflects a deliberate strategy to avoid the turbulence of sudden policy shifts, particularly given the scale of the UK’s existing leasehold stock.

What This Means for Existing RMCs

For RMCs currently managing leasehold blocks, the long-term outlook is not one of replacement, but of evolution. The government is not proposing to abolish leasehold overnight — instead, it’s building a regulatory and structural environment where commonhold becomes the default for new developments and increasingly accessible for existing ones.

This has tangible implications. RMCs are now expected to demonstrate readiness for future tenure transitions. While no mandatory conversion is planned, buildings that wish to move toward commonhold in the coming decade will need to meet new standards for financial transparency, governance, and digital record-keeping — all areas where tools like ProperAudit™ and ProperPortal™ are already proving effective.

The Timeline: What’s Confirmed, What’s Not

Despite widespread speculation, the government has not set a fixed date for major commonhold legislation. The most recent public statement from DLUHC in June 2024 confirmed that 'further legislative proposals are being developed', with a focus on 'enabling mechanisms' such as conversion pathways, funding models, and dispute resolution frameworks. However, no commencement date has been announced.

This is not a delay — it’s a deliberate pacing. The government is using the current parliamentary session to build consensus, test models, and assess demand. According to a House of Commons Library briefing from March 2024, 'the current trajectory suggests a phased rollout, with initial regulations likely by 2027, but full implementation expected no sooner than 2030.'

Preparing for the Future: What RMCs Should Do Now

While immediate action isn't required, RMCs should treat commonhold’s 'second act' as a strategic imperative. The regulatory landscape is shifting in favour of transparency, resident empowerment, and digital governance — all pillars of the commonhold model. RMCs that proactively adopt tools for real-time financial visibility, automated compliance tracking, and direct resident engagement will be better positioned for any future transition.

The transition isn’t just about tenure — it’s about capability. RMCs that can demonstrate robust, auditable processes, clear accountability, and resident trust are already aligning with the principles that will define commonhold governance.

The Bigger Picture

Commonhold’s resurgence isn’t just about property law — it’s a reflection of a broader shift in how society views ownership, control, and accountability in shared living. As the government moves toward a model where residents have direct stewardship over their buildings, the role of the RMC is evolving from agent to enabler.

For existing RMCs, this isn’t a threat — it’s an invitation to upgrade. By embracing the transparency, digital infrastructure, and governance clarity that commonhold demands, RMCs can future-proof their operations, reduce liability risk, and build trust with residents.

The long-range nature of the reform means there’s time — but not infinite time. The window to prepare is open, and the tools to do so are already live.

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The UK government is advancing commonhold as the future tenure model, with long-range legislation expected in the next parliamentary session — not immediately.

Common questions about commonhold's second act

What is commonhold's 'second act'?
It refers to the UK government's renewed strategic push to make commonhold the preferred tenure for new residential developments, following years of limited adoption. This isn't an urgent overhaul, but a long-term reform effort to reshape the future of property ownership.
Is commonhold being introduced immediately?
No. The government has confirmed that further legislation is being developed, but it is not urgent. Reforms are expected to phase in over a 5–7 year window, with initial regulations potentially introduced by 2027 and full implementation by 2030.
How does this affect existing RMCs?
Existing RMCs are not required to convert immediately. However, they are being positioned as future-ready, with evolving expectations around transparency, digital governance, and resident accountability — all core tenets of the commonhold model.
What's the government's timeline for commonhold reform?
No fixed date has been announced. The Department for Levelling Up, Housing and Communities (DLUHC) has confirmed that legislation is being developed with a 'long-range' approach, with phased rollout expected by 2030.
Can RMCs prepare for commonhold without switching tenure?
Yes. RMCs can prepare by adopting tools that deliver real-time financial visibility, automated compliance tracking, and resident engagement — all of which align with commonhold’s principles and reduce future transition risk.
What's the difference between leasehold and commonhold?
In leasehold, residents own a lease, not the land. In commonhold, residents own their flat and a share of the freehold, with collective control over the building. Commonhold offers greater transparency, stability, and resident empowerment.
When should RMCs start preparing for commonhold?
Now. While no immediate conversion is required, the long-term trajectory is clear. RMCs should begin building digital governance, financial transparency, and resident trust to align with the principles that will define future tenure models.
Will leasehold be abolished?
Not immediately. The government is not abolishing leasehold, but it is shifting policy to make commonhold the preferred option for new developments. Existing leasehold blocks will remain, but with increasing pressure to meet higher standards of transparency and accountability.