The Council of Mortgage Lenders has called the take-up of commonhold a 'damp squib', saying the new form of residential property tenure has failed to take off. They believe that the government should be more active in promoting commonhold, and involve its affordable housing proposals to support the tenure.
Commonhold was introduced in England and Wales a year ago as an alternative to leasehold. It is effectively a new form of freehold ownership that allows a group of owners of a multi-occupancy building to share ownership of and responsibility for common areas and services without the need for a landlord.
The Council have asked the government to consider a suspension on stamp duty to commonhold property to encourage property developers to enter into this area.
Our view
The concept is still a good one and the idea of commonhold property will become more popular as people become aware of savings that can be made in ground rent and management fees.
Learn more about mortgages and property in our dedicated Mortgage website.