BobSmytherman 28 JohnWilliams
PaulRobertson 30 Letters
JonathanSmith 33
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John Williams Thegovernment’s refusal to regulate the leaseholdsectordoes usnofavours
InmylastartIcle Irantedabout red tape and howunnecessary and burdensomeregulation leadsto greater expenditure for leaseholders. This timeround, followingon fromthe commentsmade by other contributors in the last issue of Flat Living, Iwant to focus on regulation of leaseholdmanagement. Weare nowseeing ever-increasing
callsfor compulsory regulation of managing agents in placeofthe currentsystemofself-regulation. Aone hour debatewas initiated in theHouse of Lordson23April by BaronessGardner,calling forsimplification of thelaw; consolidationofthe various Acts of Parliament;regulationofmanaging bodies; transparency; complaints processes; closingloopholes; easier changetocommonhold; righttomanage; standard of services andvalue
formoney.The debatewas concludedbyBaroness Hanham(Under-Secretary of State, Department forCommunities and LocalGovernment) confirming that theGovernmenthas no plans to interveneasitbelievesthere aresufficientroutesofredress for unsatisfiedleaseholders. InMarch, thePlanning and
HousingCommittee of the London Assembly publishedits reviewinto servicecharges in
London.The terms of referenceweretounderstandthe nature of servicecharges in London, howtheyare calculated,charged and administered by landlords and paid
forbyleaseholders.The aim of thereviewwas to look atways the relationship betweenleaseholders andlandlordscould be re-balanced, with particular focusontheway transparencyofservice charges can beimproved,givingleaseholders greater control over theway services are provided to their homes. The80pagereportmakes nine
recommendations(most to be undertaken by theend of 2012) andclearly alot of timeandeffort has been invested in this review. However, Idonot believeithas gone farenoughand theone-size-fits-all approach forpublic, retirement, social andprivate housinghas confused theissues.Whatmight
Flat Living Summer 2012
ensure leaseholders only select managing agentswhoaremembers of arelevantprofessionalbodysuch asARMAor RICS.Iamamassive fanofARMA. It producesawealth of informationthrough guidance notesandweeklyemailbulletins to managing agents andfreeadviceto
Baroness Gardner speaking in the House of Lords
be done by alocalauthoritymaynot be achievable byamanagingagent trying tomakeaprofitable living in theprivate
sector.Mythoughts are thereforemainly confined to the private sector. Part ofmewants compulsory
regulation as it will result in fewer managing agents andariseinfees. That is good formanagingagentsin anundervaluedsector, butclearly notgood forleaseholderswhowill seeservice chargebills
rising.The otherpartofme, already regulated byARMAandRICS, shudders at the thoughtofyetmoreregulation. Proper regulation does notcomecheap as RICS has foundout to ourcost. Therewillalwaysbethe criticism
Weneed clear, concise guidance to the rolesand responsibilities forboththe leaseholder andthe managing agent
that self-regulatingprofessional bodieshaveavested interest in lookingout forthememberswho fund theircosts.However, having been heavilyinvolvedinRICSfor many years, Iknowthatisnot the case. In anyevent thereisalready the requirement for bothARMAand RICSmemberstohaveacomplaints handling procedure, to subscribeto an independentombudsman scheme andbeabletodemonstrate they hold servicechargemoniesinthe correct and legal format. Governmentmaintains it does
notwanttointervene,but has said it will keepamonitoringbrief.Well, quitefrankly,thatdoesnot help leaseholders ormanaging agents. So
what is the solutionin the short term? nWeneed better promotion of the
benefitsofself-regulation.Thiswill
leaseholders. nLeaseholders need to be better informed -althoughIdonot believe they areasdim-wittedand gullible as somehavemade out! Nevertheless, asmanaging agentsweneed to provide moreinformation at the outset,particularlywhendealing with repliestosolicitors’ enquiriesby providingmoregeneral information (for example TheGuidetoLivingin LeaseholdFlats publishedjointly by ARMA, LEASE andARHMor 21Ways to be a Great Leaseholder producedby ARMA)tobepassedtothepurchasing
leaseholderbythe solicitor. nLeaseholders should be actively encouraged to getinvolvedinthe running of theirbuilding/estate. Thebest runblocksare thosewhere thereisastrongteamapproach by themanaging agent in tandemwith active leaseholders.Far toooften thereisasingleleaseholderwho shoulderstheunpaid andthankless
burden. nARMA(inconsultationwithRICS andARHM, FPRAamongothers) needstodrawupacharter setting outminimumservicestandards expected fromtheirmembers, over andabove theRICSService Charge ResidentialManagementCode (includinginsurance commissions
and accounting.) nARMAneeds to continue to tackle government on regulation and making it easier forleaseholders to take over themanagement responsibilities. In summary,weneed clear,
conciseguidancetothe roles andresponsibilities forboththe leaseholderand themanagingagent –the continuedlackofgovernment action gives us all a headache!●
JOHnWIllIams Director ofManagement and Professional services at chartered surveyors Aston Rose Tel 0207 6291533
Websitewww.astonrose.co.uk
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