Committee publication · Correspondence · 25 March 2026
Letter from Vanessa Griffiths to the Chair dated 16 March 2026 following up oral evidence given on behalf of RICS on 10 March
From: Housing, Communities and Local Government Committee
Inquiry: Pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill
Summary
Vanessa Griffiths, a leasehold reform specialist at Knight Frank LLP, follows up on RICS oral evidence (10 March 2026) with detailed analysis of commonhold conversion proposals. She outlines practical advantages and disadvantages, identifies significant cost shifts to flat owners, and presents a case study showing a prime London property sold £300,000 below asking price due to lender and conveyancer reluctance around commonhold tenure. She emphasises that education, clearer guidance, and reform of existing legislation (LAFRA 2024) are critical to success.
Key findings
- Commonhold converts ownership indefinitely and removes ground rent, but shifts capital expenditure risk, building maintenance liability, and financial exposure for neighbours' defaults entirely to unit owners.
- A case study of a four-flat commonhold block in North London saw one property sell £300,000 under list price; only two buyers showed interest, with lenders offering mortgages through just eight UK providers due to tenure uncertainty.
- Non-participating leaseholders face forced purchase of their commonhold unit before they can sell on the open market, with unclear valuation methodology and risk of being trapped if unable to afford the buyout.
- Market value impacts are unknown short-to-medium term; a two-tier property market may emerge if commonhold becomes the norm. Service charges and building costs are likely to rise as true capital liabilities become apparent to unit holders.
- Griffiths recommends prioritising education for agents, lawyers, valuers and homeowners, stronger regulation of managing agents to support Right to Manage, and resolution of outstanding LAFRA 2024 reforms before wider commonhold rollout.
Tone
CriticalTopics
Key actors
Vanessa Griffiths, RICS (Royal Institution of Chartered Surveyors), Knight Frank LLP, Housing, Communities and Local Government Committee, Law Commission
Notable line
“The property however sold for £300,000 under the listed price and achieved a rate per square foot considered very low for the area.”
Key Quotes
“The main barriers, in my opinion are the risks outlined above to the flat owners, the market uncertainty, increased owner liability and the lack of guidance and policy for professionals.”
“The first buyer struggled to find a conveyancing solicitor who knew about commonhold and had received advice not to proceed with the purchase due to the unknown risks with commonhold.”
“… only 8 lenders in the UK would be able to lend on the property due to the commonhold tenure.”
“Homeowners need education on what it means to take 100% of the responsibility of not just managing a block but also ensuring compliance with legislation such as the Building Safety Act.”
“The market is facing great uncertainty with leaseholders waiting for the reforms, in whatever shape they may be to happen.”
Source · parliament.uk record ↗