Will Commonhold Actually Be Cheaper Than Leasehold? Here's What the Evidence Says

Our take

This article is UK-focused, but it carries a useful mirror for South African sectional title owners and body corporate members who often draw comparisons between their system and overseas leasehold or commonhold models. SA's Sectional Titles Schemes Management Act (STSMA) already mandates 10-year maintenance plans and reserve funds — the very features the UK is now introducing as selling points of commonhold. That's worth noting: South African sectional title law is arguably ahead of the UK on this front. For SA landlords and levy-paying owners frustrated by escalating body corporate levies, the lesson here is the same as in the UK — tenure structure alone does not reduce maintenance costs. Bricks and mortar cost what they cost. What does make a difference is proactive reserve fund management, competitive procurement, and engaged trustees. Buyers considering sectional title schemes should scrutinise the 10-year maintenance plan and reserve fund balance before signing an offer to purchase. A well-run body corporate with a healthy reserve fund is a far stronger indicator of future levy stability than any structural reform promise.