UK Finance supports the government's ambition to move from leasehold to commonhold as the default tenure on newbuild flats. The response identifies the wide-ranging impacts and the challenges that will need to be addressed to successfully implement.

 

Our response offers broad support that enhances transparency, reduces homeowner risk and promotes the long-term value of residential property assets.

 

We identify a number of areas where greater clarity and collaboration will give opportunity to prevent unintended consequences and support the adoption of commonhold. There are types of specialist lending, like shared ownership, or complexity in types of developments that are identified where greater consideration should focus.

 

Transition to commonhold will be complex and will require the whole homeownership ecosystem to work collectively to deliver good consumer outcomes.