The Department for Communities and Local Government has proposed a new regulatory model for agents in the leasehold sector in England to create a fairer property management system which curbs the effects of rogue agents.
Other proposals for consideration is changing the law so that managing agents must be qualified and regulated in order to practice and also whether lessees should have more say over appointment of their managing agent.
However, should lessees wish to manage their block collectively, a right given under the Commonhold and Leasehold Reform Act 2002 gives an opportunity for qualifying flat owners to run their own affairs and to make their own decisions about the management and upkeep of their flats.
Alternatively, a right under the Leasehold Reform, Housing and Urban Development Act 1993, allows qualifying tenants who hold long leases the right to purchase the freehold of their building collectively.
For peace of mind and practical advice on progressing either the Right to Manage route under the 2002 Act, or, Collective Enfranchisement under the 1993 Act, contact our specialists here at Dutton Gregory.
The government wants to look at new ways to protect both leaseholders and tenants in England from unfair costs – in particular for service charges, which leaseholders pay towards repairs and maintenance of their homes, which are often passed on to tenants. According to latest government data, there are more than 4.2 million leasehold homes in England with service charges of between £2.5 billion and £3.5 billion a year.