What the Leasehold & Freehold Act Really Means for Freeholders and Residents
Recent government announcements around leasehold reform, including proposals to cap existing ground rents and accelerate the move toward commonhold, have brought renewed attention to how residential buildings are owned and managed.
While headlines focus on legislation and policy direction, the more important question for freeholders, estate managers and residents is how these changes will be felt in practice.
The Leasehold & Freehold Act is not just a legal framework. It signals a broader shift in expectations around transparency, accountability and how block management is delivered day to day.
Ground Rent Caps Signal a Change in Direction
The government’s proposal to cap existing ground rents at £250 represents a significant shift. While this measure is subject to consultation and implementation detail, the intent is clear: ground rents are increasingly seen as incompatible with a fair and transparent residential system.
For freeholders, this changes the context in which assets are managed. For residents, it reinforces expectations around value, clarity and fairness.
Importantly, this is not just about ground rent income. It reflects a wider move toward simplifying leasehold arrangements and reducing elements that residents perceive as opaque or unfair.
Commonhold Is a Direction of Travel, Not an Overnight Change
Alongside ground rent reform, the government has reaffirmed its commitment to making commonhold the default tenure for new flats in the future.
Commonhold is not something that will replace leasehold overnight, nor will it apply retrospectively to most existing buildings in the short term. However, its growing prominence is significant.
It signals a long-term shift toward resident-led ownership models, clearer accountability and simpler structures. For managing agents, this reinforces the importance of operating in a way that aligns with transparency, explanation and partnership regardless of tenure.
The Shift Is About Expectation, Not Just Legislation
While the Act introduces legal and structural changes, its most immediate impact is cultural.
Freeholders and residents are more aware of their rights and more willing to question decisions. This does not signal conflict, it signals engagement. The challenge for managing agents is responding with clarity and confidence rather than defensiveness.
The direction of travel is toward management that is easier to understand and easier to explain.
Service Charges Will Face Greater Scrutiny
Service charges remain one of the most visible pressure points under leasehold reform.
Even where costs are reasonable, they are more likely to be questioned. Residents and freeholders want to understand how charges are built, what alternatives were considered and how decisions support long-term building performance.
Managing agents will need to provide explanation, not just figures. Clear reporting, early communication and documented decision-making will be essential to maintaining confidence.
Decision-Making Must Be Easier to Explain
Leasehold reform reinforces the importance of accountability.
Managing agents must be able to explain who made a decision, why it was made and how it benefits the building. Informal processes and undocumented judgement calls will become harder to defend.
This does not mean management becomes slower. It means it becomes clearer and more structured.
Why Proactive Management Matters More Than Ever
As scrutiny increases, proactive management becomes a necessity rather than a preference.
Planned maintenance, early risk identification and transparent communication reduce the likelihood of disputes and reactive decision-making. They also make explanations easier when questions are raised.
In this context, good management is defined not by the absence of issues, but by how well those issues are anticipated and managed.
What This Means for Freeholders and Estate Managers
For freeholders and estate managers, the Leasehold & Freehold Act presents an opportunity to reassess whether current management arrangements are fit for the future.
Are decisions clearly explained? Is reporting easy to understand? Are risks visible early? If not, reform will make those gaps more apparent.
Choosing managing agents who operate with clarity, accountability and long-term thinking will become increasingly important.
The Glide Approach to Leasehold Reform
The Glide Way is built around the principles that leasehold reform reinforces: transparency, honest explanation and confidence in decision-making.
Rather than reacting to reform, Glide’s approach aligns with it, focusing on clear communication, structured governance and proactive management.
Leasehold reform is not about creating unnecessary complexity. It is about raising standards and rebuilding confidence in how buildings are managed.
For those prepared to meet that challenge, it represents an opportunity rather than a threat.