News Flat Living Calls for reform 9


ARMAConference 10 ARMA-QAward 11 Radonrisk


13 what’s happening in the leasehold sector LegaL Section20deciSion‘unworkable’


TheHighCourt judgement inthe recentPhillips&GoddardvFrancis casehascreatedhugeuncertainty amongpropertymanagers. The decisioninthis casehasoverturned acceptedlegal viewsonhow landlordsandtheiragentsshould complywithS20consultation.The judgement seemstosuggestthat the costs of allqualifyingworks to abuildingmustbeaddedtogether and, inanyyear, ifthe total costs ofthoseworks are toexceed£250 foranyone leaseholder,thenS20 consultationmustbecarriedout. If not,the landlordwillbelimitedas totheamounthecanrecover from theleaseholders. AccordingtotheAssociation ofResidentialManagingAgents


TribunaL service


new property watchdog frommay


FromMay2013theResidential PropertyTribunalServiceis expectedtobecomepartofanew first tierPropertyChamber.Subject toparliamentaryapproval,on1 May2013,thisnewbodywilltake over responsibilityfortheLVTs, rentassessmentcommitteesand residentialpropertytribunalsthat arecurrentlyadministeredby theResidentialPropertyTribunal Service.TheChamberwill alsotake overthefunctionsoftheAgricultural LandTribunalsandtheAdjudicator oftheLandRegistrywhichwillbe woundupon1May.Theregional structuresoftheRPTSwillremain forthepresentalthoughitwillno longerhaveastatutorybasis.The threebodieswillbecomepartofthe newChamber,andtheirheadswill becomePrincipalJudges,withthe ChamberheadedbyanewChamber President.Allcurrentjudicialoffice holders(legalandnon-legalmembers) will transferacrosstobecome judgesandmembersoftheFirst-tier Tribunal.Serviceandadministration chargesappealswillcontinuetobe madetotheUpperTribunal.The changesapplytoEnglandonlyand havenotbeenmadeinWales.


Flat Living issue 13, winter


(ARMA)thedecisionislikelytohave adverse consequences foreveryone inthe sector. “It is difficult to see anyworkable solutionthatagents andtheir landlord clientscanfollow arisingfromthisdecision.The approachsuggested...of looking at allworks inanyfinancial year andapplyingthe S20thresholdto that total, leadstoseverepractical difficulties aswell asextraexpense formanagingagentswhichwould bepassedonto leaseholders in servicecharges.” PropertymanagerBernie


Walesalsobelievesthedecision isunworkable.“Ifthe‘repairsand maintenance’ section, forexample, ofourbudgets results inanyone leaseholderpaying£250ormore…


thenintheorywehaveaproblem,” hesays. “For someblockswecan minimisesuchrepairsforthenext year, to reduceexpenditure tobelow £250,whileweallowthesituation to clarify (hopefully).But for some smallerblocks…I’mthinkingin particular ofahouse split intotwo flats…wewouldvirtuallyhave to stoprepairingaltogether –andthus bein breachofthetermsoflease, therebyshootingourselves inthe foot”. Berniebelievestheanswer is tobe


cautiousandweighupeachblock’s circumstanceshonestlyandopenly withtheclientandleaseholders.“If managers are seentobeconsulting informallyaboutwhatisright todo, thisshouldavoidlegal action–but


if legalactioncommences,atleast we’llbeable toholdourheadsup andhonestly saywe’vedonewhat seemedbest inthecircumstances – andwewere tellingeveryonewhat weweredoing,”hesays. ARMAhasmet officials atthe


Department ofCommunitiesand LocalGovernment(DCLG)anda legaladvisor fromtheLeasehold Advisory Service(LEASE)and underlinedwiththemthatthe implicationsofthis judgement are potentiallyseriousandfar-reaching. “Atthis stagethe priority is to understandthefullimplications ofthe judgementandwewillwork withtheseorganisationsandlegal commentators to achievethat,”said aspokesman.


reguLaTion


callSfor reformare getting louder


AdebateintheHouseofLords earlierinJanuary dealing with amendments to theEnterprise andRegulatoryReform(ERR) Bill provided theleaseholdsector with theopportunity to lobby government forstrongerregulation of thesector. TheFederationof PrivateResidents Associations (FPRA) andRoyal Institutionof Chartered Surveyors(RICS)are both backing calls for reformtabled by BaronessHayter. TheRICS, with supportfrom


evenT


churesidentslinearehostinganetworkingeventon7thmarch2013 atmalmaisoninbirmingham.thekey topics willbetheprocess of leaseholdValuationtribunals,whatmakesanrmcdirector nervous? andriskmanagement. midlandsbasedpropertymanagingagents,directors ofresidents’


freenetworking eVentforflatownerS


management companiesanddevelopers specialisinginblocksofflats areinvitedto attend.theevent runs from5:30pmto 9:30pmandis complimentary forthosethatrequestaspace priorto1stmarch. to attendsimply contact nick cachia atchuresidentslineby calling0800 281235oremailevents@churesidentsline.co.uk


theFPRA, has putforward an amendmenttothe Bill calling forstrongerregulationofletting agents.BaronessGardner of Parkes used thedebatetocallfor regulation ofmanaging agents. Thepassageofthe Bill through Parliament has provided atimely opportunity to strengthen calls for leasehold reform. LifePeeress BaronessGardner,


whoregularly raises leasehold issues in theHouse of Lords, urged leaseholders at theFPRAAGMlast autumntomake theirMPsaware of theirproblems.Housingisan “intensely politicalissue” shetold the 250 strong audience.


9


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64