Commonhold: with great power comes great responsibility
Summary
The article examines concerns raised about the draft Commonhold and Leasehold Reform Bill, arguing that greater control for unit holders may also bring significant financial, legal and governance responsibilities. It highlights that key operational details, including voting rights and dispute resolution, are expected to be set out in future regulations rather than in the bill itself.
Why it matters
Residential property surveyors may need to advise clients on the practical implications of commonhold governance, budgeting and enforcement, particularly where building management decisions and cost recovery are contested. The article also signals potential future changes to the legal framework that could affect valuation, management and dispute resolution in multi-unit residential buildings.
Key points
- The draft bill aims to shift control from landlords to commonhold unit holders.
- Rights over budgets, managing agents and community statement changes are expected to be set out in regulations.
- The article warns that unit holders’ interests may not always align with the commonhold association.
- Enforcement and dispute resolution costs may need to be paid upfront before recovery from defaulting parties.
- The new regime could create both greater control and greater financial/legal responsibility for owners.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
