The government’s Draft Commonhold and Leasehold Reform Bill could represent one of the most significant changes to residential property ownership and management in a generation.
For decades, the leasehold system has faced criticism for creating a disconnect between those who own buildings and those who live in them. Concerns around escalating service charges, inadequate reserve funds, unexpected major works and a lack of transparency have all contributed to growing calls for reform.
The proposed legislation seeks to address these issues by promoting commonhold as the preferred ownership model for flats in England and Wales. While much of the discussion has focused on ownership structures, the implications for building maintenance and long-term asset management could be equally significant.
If enacted in its current form, the legislation would introduce new requirements around reserve funds, maintenance planning and collective decision-making, placing greater emphasis on proactive building management and long-term financial planning
What the proposed legislation could mean
- Long-term maintenance planning
One of the most notable proposals is the requirement for commonhold developments to adopt a structured, forward-looking approach to building maintenance.
Rather than relying on reactive repairs or short-term budgeting, commonhold associations would be expected to understand future maintenance liabilities, anticipate major capital expenditure and plan accordingly.
For many buildings, this will require a comprehensive Planned Preventative Maintenance (PPM) strategy supported by detailed lifecycle costing and condition assessments.
- Mandatory reserve funds
The draft Bill also proposes that commonhold associations maintain dedicated reserve funds to support future major works and capital replacement projects.
The objective being to reduce the likelihood of flat owners facing significant, unexpected costs when key building elements reach the end of their service life.
This represents a move towards a more transparent and sustainable approach to asset management, where future expenditure is identified, budgeted for and funded over time.
- Greater accountability and transparency
The proposed reforms would place greater responsibility on commonhold associations and unit owners to make informed decisions about the management of their buildings.
Major expenditure decisions would be supported by clearer maintenance planning, financial forecasting and collective oversight, creating a stronger link between building condition, future liabilities and funding requirements.
In practice, this means maintenance planning is likely to become a far more visible and important component of building governance than it has been under many traditional leasehold arrangements.
Why proactive owners are acting now
While the legislation remains subject to parliamentary scrutiny, the direction of travel is clear. Long-term maintenance planning, reserve fund adequacy and transparent asset management are moving from best practice towards formal obligation.
For developers, residential asset owners, managing agents and mixed-use property stakeholders, this presents an opportunity to assess whether existing maintenance strategies are robust enough to meet future expectations.
Perhaps the biggest change is not the requirement to maintain a building, but the expectation that owners and managers can demonstrate how maintenance will be planned, prioritised and funded over the long term.
Buildings with comprehensive maintenance strategies, accurate lifecycle forecasting and well-structured reserve fund planning are likely to be better positioned to navigate future regulatory requirements while protecting both asset value and occupier experience.
Beyond compliance, the commercial benefits remain compelling. Well-maintained buildings typically experience fewer unexpected failures, lower lifecycle costs, stronger resident satisfaction and improved long-term value retention. They also present fewer risks during acquisition, refinancing and due diligence processes.
A strategic approach to PPM
At HartDixon, we help clients move beyond maintenance schedules and towards informed asset management.
Our Planned Preventative Maintenance services provide building owners, developers, managing agents and investors with the insight needed to understand future liabilities, forecast expenditure, prioritise investment and develop practical strategies for long-term building performance.
Our PPM plans typically cover:
- Comprehensive condition surveys covering building fabric, structure, roofing, facades, external works and M&E systems
- Long-term maintenance programmes and lifecycle cost forecasting across 5, 10, 25 years and beyond
- Reserve fund forecasting and capital expenditure planning
- Risk-based prioritisation of maintenance and replacement works
- Clear, board-level reporting suitable for owners, investors, lenders and management bodies
- Ongoing reviews and updates to ensure maintenance strategies remain relevant as buildings and requirements evolve
We work across residential, commercial, mixed-use and public sector property portfolios throughout the UK, helping clients make informed decisions that protect assets, control costs and support long-term value.
Preparing for the future
The proposed commonhold reforms signal a broader shift in how residential buildings are managed, funded and maintained.
Whether or not every aspect of the current draft progresses unchanged, the emphasis on proactive maintenance planning, long-term financial forecasting and greater transparency is unlikely to diminish.
For organisations responsible for residential and mixed-use assets, now is the ideal time to review existing maintenance strategies and ensure they are fit for the future.
To discuss your Planned Preventative Maintenance requirements with one of our partners, contact HartDixon today.