The landscape of property management in the UK is undergoing a seismic shift. In a recent expert webinar featuring Nigel Glenn (Non-Executive Director of Emiria), Cassandra Zanelli (CEO of Property Management and Legal Services), and Joe Goss (Fixflo), they discussed the looming legislative changes in early 2026.
From the rise of Commonhold to the potential abolition of forfeiture, here are the key takeaways every block manager needs to understand to stay compliant and effective.
The Commonhold revolution
The most significant topic on the horizon is the push toward Commonhold as the default tenure for new builds. Unlike leasehold, Commonhold provides freehold ownership of individual units (flats) and shared ownership of common parts through a Commonhold Association.
The key operational shifts include:
- Standardisation: One of the greatest hurdles in leasehold management is the thousands of versions of leases. Commonhold introduces a prescribed Commonhold Community Statement, creating much-needed uniformity in rights, duties, and powers.
- Sectioning and voting: Management will move toward a more granular sections model. If a multi-block estate has a car park used only by specific residents, only those unit holders will vote on and fund its maintenance.
- Mandatory reserves: In a win for long-term building health, Commonhold mandates the collection of reserve funds. This moves away from the pay-as-you-go repairs that often plague older leasehold blocks.
While Commonhold is the goal for new developments, converting legacy buildings remains a long-term play. With a 100% consent requirement currently in place (though 50% or 80% thresholds are being debated), the industry expects a two-tier system of leasehold and commonhold to coexist for decades.
Want to hear more from our panellists? Watch the webinar recording here.
Litigation and cost recovery
The Leasehold and Freehold Reform Act is set to alter how managers recover legal costs. Traditionally, if a leaseholder breached their contract, such as through non-payment, legal fees were often recoverable directly via lease clauses.
Under the new framework, landlords and managers will likely need to obtain a court or tribunal order to recover litigation costs. This flip-reverse of the current system shifts the burden of proof to the manager, potentially prolonging the recovery process and increasing administrative overhead.
The abolition of forfeiture
Perhaps the most controversial proposal is the abolition of forfeiture. Historically, the threat of losing a leasehold asset has incentivised mortgage lenders to step in and settle service charge arrears.
If forfeiture is replaced with a standard "order for sale" process, there are concerns regarding:
- Lender response: Will banks be as quick to settle debts without the immediate threat of asset seizure?
- The doom spiral: Without effective debt recovery, buildings risk falling into disrepair as funds dry up, leading to a cycle of further non-payment by frustrated residents.
Focusing on education
As management becomes more democratic, the resident director's role becomes more complex. The panel highlighted the danger of controlling personalities taking over boards, as well as the risks faced by amateur directors who may not realise they are legally responsible for building safety and compliance.
Education will be the cornerstone of success. Managers must pivot to become educators, helping lay directors understand their fiduciary duties and the complexities of property law.
Communication is key
Whether managing a legacy leasehold block or a new Commonhold association, the panel agreed on one fundamental truth: effective communication is the ultimate tool. Transparency about where service charges go, the need for reserve funds, and the rationale behind sectioned costs will reduce friction and foster community engagement.
Final thoughts
As legislation evolves, the administrative burden on block managers continues to grow. From tracking compliance to managing resident communications, having the right digital infrastructure is a necessity.
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