Commonhold: A New Way to Own Flats in England and Wales

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Commonhold: A New Way to Own Flats in England and Wales

The government is moving towards a major reform in how flats are owned, with the goal of ending new leasehold ownership for flats altogether. The proposed alternative? Commonhold — a type of ownership that’s familiar in other parts of the world but still rare in the UK.

While the government is still consulting on the details, here's what we know so far.

What Is Commonhold?

Commonhold is a type of freehold ownership designed specifically for flats. Unlike leasehold, there’s no expiring term, no ground rent, and no third-party freeholder. Instead:

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The Renters' Rights Bill: The End of Fixed-Term Tenancies and Changes to Rent Increases

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The Renters' Rights Bill: The End of Fixed-Term Tenancies and Changes to Rent Increases

The Renters’ Rights Bill proposes significant changes to the private rented sector, including the abolition of fixed-term tenancies. This shift means tenants will have greater flexibility, but it also presents potential challenges for landlords. Additionally, changes to how rent increases are handled will impact both parties.

What Does the End of Fixed-Term Tenancies Mean?

Under the proposed changes, all tenancies will become open-ended, meaning tenants can leave at any time as long as they provide two months’ notice. This means that, in theory, a tenant could move in and immediately serve notice, leaving after two months.

When similar changes were introduced in Scotland in 2017, some tenants took advantage of this flexibility

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The Renters' Rights Bill: The Abolition of Section 21

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The Renters' Rights Bill: The Abolition of Section 21

What is Section 21?

Section 21 is a legal provision in the Housing Act 1988 that allows landlords to evict tenants in England without providing a reason, as long as the correct process is followed. This is often referred to as a ‘no-fault eviction.’

Under Section 21, landlords must give tenants at least two months’ notice in writing. If the tenant does not leave after this period, the landlord can apply for a possession order through the courts.

Section 21 was introduced to encourage investment in the private rented sector (PRS) by giving landlords confidence that they could regain possession of their properties when needed. Section 21 evictions have generally been faster and

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The Renters' Rights Bill: Discrimination in the Private Rental Sector

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The Renters' Rights Bill: Discrimination in the Private Rental Sector

Under the proposed Renters' Rights Bill, discrimination against tenants based on factors like receiving benefits or having children is set to be illegal. These new measures aim to ensure fair treatment for all prospective tenants, helping to create a more inclusive rental market.

What Does the New Legislation Say?

  • Discrimination against tenants with children: Clause 32 of the proposed legislation makes it illegal for landlords and agents to discriminate against prospective tenants with children, regardless of the parent's gender. The only acceptable reason for refusal based on family size is overcrowding.

  • Overcrowding regulations: The law will prohibit landlords from discriminating against tenants with children, except where overcrowding regulations apply.

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The Renters' Rights Bill: Pets

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The Renters' Rights Bill: Pets

The Renters' Rights Bill plans to introduce new rules about tenants' rights to request a pet in rental properties.

What’s Likely to Change?

  • Automatic Approval: Pets will likely be assumed to be allowed unless the landlord has a valid reason to refuse (e.g., restrictions from a superior landlord, unsuitable property).

  • Tenant Appeal: If a landlord refuses a pet request, the tenant can apply to court, which could order specific performance, compelling the landlord to allow the pet.

  • Pet Insurance: Landlords will likely be able to require tenants to take out pet insurance to cover any damage. Landlords may charge the premium and excess as a permitted payment.

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