© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
This week the Department for Levelling Up, Housing & Communities (DLUHC) published its report “Living in and looking after shared buildings: the perspective of leaseholders and prospective flat buyers” which sets out DLUHC’s research into the views of leasehold flat owners and prospective purchasers. As the report admits, the research is based on a small number of focus groups and, therefore, we must be careful in extrapolating too much from the feedback of these participants. However, it does give a platform to opinions that have not often been profiled in the arena of leasehold reform- the middle ground. DLUHC specifically sought to exclude from their focus groups those holding very strong views on either side, to better understand those in the middle.
The participants’ feelings towards leasehold seem to largely be influenced by their personal experiences with freeholders and management companies. Those who have experienced good building management, clear communication and timely responses to concerns were generally positive and felt that the current system worked well. Those who had struggled to contact their landlord or management company, were seeing repairs left undone for months, or were faced with surprise bills, were unsurprisingly less positive about leasehold and were more inclined to consider alternatives.
Participants were positive in theory about residents being in charge of building management decisions, but found the reality much less appealing when confronted with the need to take responsibility for maintenance and management. Most participants were reportedly not interested in playing an active part in the management of their building, with various reasons contributing to this position. If this is how those leaseholders who were willing to give time to participate in these focus groups are feeling, this is not a great indicator for the willingness of many leaseholders to participate in building management.
Even more concerning is that none of the participants were happy to work with their current neighbours in the way that would be required by commonhold (and therefore arguably also following a collective enfranchisement). With so many of our homes forming part of shared buildings, we need a system which works for communal living. An external third-party freeholder can often be a good solution, which does not require neighbours to work together to manage their buildings. As one participant said, “Leasehold can give you comfort in knowing someone else will look after big issues.” It also leaves someone else to pursue your neighbours when they haven’t paid their share of that month’s bills.
Another key theme which permeates the report is a lack of understanding around leasehold, enfranchisement, right to manage and commonhold. Whilst most participants were aware of the term “leasehold”, there were misunderstandings about the more detailed aspects of leasehold. Fewer than half of participants were aware of the option to own a share of the freehold, and awareness of the right to manage and commonhold was very low. The report suggests Government led campaigns as an option, which could perhaps assist leaseholders who have had a bad experience to become more aware of the options open to them, if the information shared is properly impartial and accurate. However, leaseholders must be advised clearly of the responsibilities they will face following the exercise of these rights, so they enter into this with their eyes open.
Whilst the report issued by DLUHC is not without fault (for instance, the nuance and depth of information provided to participants on the different ownership options is questionable), it does serve as a helpful reminder that there are leaseholders out there who are happy with the status quo. DLUHC would do well to remember this when considering the way forward for leasehold reform, and not let themselves be swayed solely by the voices of those who shout the loudest.
Rachel Hardingham is a Solicitor in the Residential Team at Irwin Mitchell