Shared Ownership & Resident Rights
A guide for residents on part-rent, part-buy leases regarding RTM and Commonhold.
If you are a shared owner with Southern Housing, you might have been told in the past that you don't have the same rights as 100% owners. As of March 2026, this is no longer true. Whether you own 25% or 75%, you pay 100% of the service charges and suffer 100% from broken amenities. Consequently, the law now recognises your 100% right to manage the building.
1. Your Right to Manage (RTM)
The most significant change for shared owners came with the Leasehold and Freehold Reform Act 2024.
Legal Milestone: March 3, 2025
Since March 2025, shared owners are officially "qualifying tenants" for the purpose of the Right to Manage.
How it works for you:
- The Vote: You have a statutory right to join the RTM Company.
- The Threshold: You count as one full unit toward our 50% target. It does not matter how much equity you have; your signature is equal to any other resident's.
- The Benefit: You stop paying Southern Housing a "Management Fee" to ignore your emails about the intercom or the fire doors.
2. Commonhold: The 2026 "Majority Rule"
The Draft Leasehold and Commonhold Reform Bill (2026) was designed specifically to ensure shared owners are not left behind during freehold acquisitions.
The Shared Ownership "Equity Shield"
Under the proposed legislation, the building can convert to Commonhold without you having to "staircase" to 100% ownership.
- Southern as Equity Partner: Southern Housing becomes a passive owner of the "un-bought" share of your unit.
- Resident Control: You—not the housing association—receive the membership in the Commonhold Association.
- Voting Power: You get the vote on building budgets, repairs, and local rules.
3. Financial Impact & Shared Ownership
Shared owners are often the most affected by Southern Housing's "Standardised" regional contracts because these costs are often uncapped.
| Issue | Under Southern Housing | Under Resident Management (RTM) |
|---|---|---|
| Service Charges | Arbitrary regional estimates (e.g., £22M QLTA). | Building-specific, competitive local quotes. |
| Section 20 | Opaque consultations with little recourse. | Direct vote on the budget via the RTM/Commonhold board. |
| Repairs | Months of "system errors" and unpaid BT bills. | Immediate deployment of local, accountable contractors. |
FAQ for Shared Owners
"Do I need Southern's permission to join the RTM?"
No. The Right to Manage is a statutory right. We are not asking Southern for permission; we are serving them a Notice of Claim.
"Will this affect my rent or my ability to staircase?"
No. Your lease terms regarding rent and staircasing remain exactly the same. The only thing that changes is who sends you the service charge bill and who fixes the front door.
"Does Southern get to vote instead of me?"
No. For the units they own (or part-own), their voting rights in the RTM or Commonhold Association are restricted to ensure residents maintain control.
Take Action
We need 8 signatures to take control. Every shared owner who signs brings us closer to a building that is actually managed for the people who live in it.