Self-regulation of the scandal-prone residential property management sector is in disarray after an ARMA member threatened to sue the trade body for tens of thousands of pounds.
Separately, former Labour MP Sally Keeble has stepped down as the ARMA regulator having only accepted the post a year ago.
Reports are reaching LKP that ARMA has lost a considerable amount of money after a member of the trade organisation took legal action over its disciplinary process.
The dispute has been settled without going to court and is closed down with a “non-disclosure agreement” (NDA).
ARMA has been approached for a statement, but it has declined to comment at this time.
The regulatory system of ARMA is there to reassure the public, and particularly leaseholders, that the scandal-prone residential property management sector is capable of some degree of self-regulation.
It is not reassuring that an ARMA member, or ex-member, has threatened to sue the organisation, racking up costs, and that ARMA and / or the other party have attempted to hush this up with an NDA.
ARMA and LKP agree that self-regulation of the residential property management sector is inadequate.
The imbalance of power in the leasehold sector means that it attracts more than its fair share of rogues. Hence, the Office of Fair Trading investigations and numerous court cases.
Millions of pounds of leaseholders’ service charge funds are under the control of property management companies which have no statutory regulation.