Member News
By Baroness Gardner of Parkes - 17th January 2012
Baroness Gardner of Parkes calls for a set of standards to be outlined for managing agents of leasehold blocks of flats.
To ask the government whether they will introduce regulations or a code of practice to set standards for managing agents for leasehold blocks of flats.
Having been a leaseholder myself for many years, I am aware of the major difficulties facing the very large number of residents in terms of the management of blocks by managing agents.
Most complaints seem to be based on:
1. Failure of management to deal with the everyday maintenance and essential repairs needed for a block. The regular breaking-down of services, and if they are dealt with on a piecemeal basis rather than on a planned long-term basis, can result in considerable nuisance and often additional expense for the leaseholder.
Where some blocks have the state of the building assessed at regular intervals and a schedule of necessary works for repair or maintenance prepared, in other cases the managing agents fail to check on the structure of the building until a dangerous fault develops – even when leaseholders have already drawn the managing agent’s attention to the problem requiring resolution.
2. A lack of transparency in the presentation of accounts for service charges, and refusal to answer questions, in particular on whether or not the managing agents are receiving payment or a commission for choosing certain suppliers of services such as insurance premiums. Such a commission payment could unduly influence the choice made by the managing agents, and might well not be the best choice for the leaseholders in terms of quality or cost.
The lack of transparency can leave a leaseholder unable to claim as unreasonable, undisclosed commissions or works placed where there is a conflict of interest.
This issue affects large numbers of the UK’s 1.8 million leaseholders and impacts on a wide range of people from social housing associations to premier leasehold properties. There is a lack of transparency in the presentation of the accounts on which service charges are based and it is difficult to get answers to legitimate questions that leaseholders have.
I have had discussions with the Federation of Private Residents’ Association (FPRA) and Urban Owners and also letters from leaseholders complaining that they have reason to believe that the agents receive a commission from some insurers and prefer to use those firms rather than to seek the most satisfactory and competitively priced insurer for the block.
The introduction of regulations for managing agents would enable leaseholders to know whether they were getting a fair deal. Although a Code of Practice would be less effective in dealing with the present injustices and inefficiency, it could still do much to help leaseholders get answers to the important questions they ask of the managing agents, and to raise the standard of management.
Transparency of management processes and costs is surely the right of every leaseholder.
Trixie Gardner, a former dental surgeon, was raised to the peerage in 1981.
Dods Parliamentary Communications Ltd