Society of Licensed Conveyancers warns commonhold reforms must not create new risks for homeowners and Conveyancers

The Society of Licensed Conveyancers (SLC) has responded to the publication of the Draft Commonhold and Leasehold Reform Bill, welcoming long‑overdue measures to tackle unfair leasehold practices while warning that the proposed large‑scale transition to commonhold carries significant legal and practical risks if introduced too quickly.

The SLC supports the Government’s commitment to reforming a leasehold system that has, for too long, disadvantaged homeowners. Measures such as capping ground rents, abolishing forfeiture for long residential leases and reforming estate rentcharge enforcement represent meaningful progress and will provide tangible benefits to consumers.

However, the Society has expressed serious concerns about the Bill’s ambition to make commonhold the default tenure for new flats and to accelerate the conversion of existing leasehold buildings, without sufficient evidence that the system is ready to operate at scale.

Licensed Conveyancers are the professionals responsible for delivering property law reform on the ground, and the SLC cautions that commonhold remains largely untested in England and Wales. Unlike leasehold, commonhold places the ongoing management, financial decision‑making and governance of buildings directly in the hands of homeowners, many of whom will have little experience of the legal and administrative responsibilities involved.

The Society is particularly concerned that the Bill risks exposing consumers to new forms of dispute, delay and financial uncertainty. Commonhold arrangements rely heavily on collective decision‑making, with greater scope for deadlock between owners, increased reliance on tribunals, and limited safety nets when relationships within a building break down.

There are also unresolved questions around mortgage lender confidence. While the Bill permits charges over commonhold units, it also allows for circumstances in which existing charges may be modified or extinguished through conversion or tribunal processes. Without clear and consistent lender acceptance, there is a real risk that commonhold properties could become harder to sell or remortgage, undermining the very homeownership stability the reforms seek to promote.

From a conveyancing perspective, the Bill introduces a step‑change in complexity. New title structures, Commonhold Community Statements replacing leases, automatic Land Registry changes and transitional arrangements affecting existing interests will all require careful navigation. During the transition period, this significantly increases the risk of error, delay and consumer confusion.

The SLC is also concerned about the conversion process from leasehold to commonhold. While lowering the consent threshold may make conversion more achievable, it also raises the risk that some leaseholders and third parties could be affected by the extinguishment or alteration of rights, leading to disputes and compensation claims.

The Society is therefore calling on the Government to ensure that reform is introduced at a pace that prioritises consumer protection and market stability. This includes meaningful engagement with conveyancers, clear and standardised documentation, robust transitional safeguards, and investment in education for both professionals and the public.

The SLC stands ready to work constructively with policymakers to ensure that leasehold reform delivers fairer, more sustainable homeownership—without creating a new generation of property problems under a different legal framework.

Kindly shared by The Society of Licensed Conveyancers (SLC)