Landlords are being urged to have their say on a consultation into a fairer system for leaseholders in England and Wales.

The Department for Levelling Up, Housing and Communities has proposed allowing more leaseholders in mixed-use buildings to buy the freehold through enfranchisement or to take over the management of their building through the right to manage. 

Under the current system, if shops and other similar properties take up more than 25% of the total floorspace, then leaseholders cannot collectively bid to take control of their building.

New proposals would give them the right to manage or buy their building outright, by increasing this limit to 50%.

Mandatory leaseback

Other proposals aim to make it cheaper for leaseholders to collectively buy their freehold. A ‘mandatory leaseback’ would require landlords to keep a lease on some properties in the building.

This means reducing the cost of a collective buyout of their building – making it a reality for thousands more leaseholders.

The government is also calling for views on changes to support greater use of commonhold as an alternative form of homeownership to leasehold, including for those in shared ownership schemes in England. The consultation closes on 22nd February.

tllic uprns

Chair of The Lettings Industry Council, Theresa Wallace (pictured), tells LandlordZONE that many landlords have properties in blocks of flats where the management is undertaken by a third party that they have no control over.

She adds: “The Law Commission proposals would allow more residential leaseholders to buy the freehold of their property – through enfranchisement – or take over the management of their building – through the right to manage – and so it is important that leaseholders engage with this consultation.”

Details of the consultation and how to respond.


  1. What about all those home owners who have houses that are leasehold for no other reason than to make an income stream for the builders sell on? When are these home owners going to see some resolution?


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