• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Home
  • What is LKP
  • Find everything …
  • Contact
Donate

Leasehold Knowledge Management Logo

Secretariat of the All Party Parliamentary Group on leasehold reform

Mobile Menu

  • Home
  • What is LKP
  • Find everything …
  • Contact
  • Advice
  • News
    • Find everything …
    • About Peverel group
    • APPG
    • ARMA
    • Bellway
    • Benjamin Mire
    • Brixton Hill Court
    • Canary Riverside
    • Charter Quay
    • Chelsea Bridge Wharf
    • Cladding scandal
    • Competition and Markets Authority / OFT
    • Commonhold
    • Communities Select Committee
    • Conveyancing Association
    • Countrywide
    • MHCLG
    • E&J Capital Partners
    • Exit fees
    • FirstPort
    • Fleecehold
    • Forfeiture
    • FPRA
    • Gleeson Homes
    • Ground rent scandal
    • Hanover
    • House managers flat
    • House of Lords
    • Housing associations
    • Informal lease extension
    • Insurance
    • IRPM
    • JB Leitch
    • Jim Fitzpatrick MP
    • John Christodoulou
    • Justin Bates
    • Justin Madders MP
    • Law Commission
    • LEASE
    • Liam Spender
    • Local authority leasehold
    • London Assembly
    • Louie Burns
    • Martin Paine
    • McCarthy and Stone
    • Moskovitz / Gurvits
    • Mulberry Mews
    • National Leasehold Campaign
    • Oakland Court
    • Park Homes
    • Parliament
    • Persimmon
    • Peverel
    • Philip Rainey QC
    • Plantation Wharf
    • Press
    • Property tribunal
    • Prostitutes
    • Quadrangle House
    • Redrow
    • Retirement
    • Richard Davidoff
    • RICS
    • Right To Manage Federation
    • Roger Southam
    • Rooftop development
    • RTM
    • Sean Powell
    • SFO
    • Shared ownership
    • Sinclair Gardens Investments
    • Sir Ed Davey
    • Sir Peter Bottomley
    • St George’s Wharf
    • Subletting
    • Taylor Wimpey
    • Tchenguiz
    • Warwick Estates
    • West India Quay
    • William Waldorf Astor
    • Windrush Court
  • Parliament
  • Accreditation
  • [Custom]
Menu
  • Advice
  • News
      • Find everything …
      • About Peverel group
      • APPG
      • ARMA
      • Bellway
      • Benjamin Mire
      • Brixton Hill Court
      • Canary Riverside
      • Charter Quay
      • Chelsea Bridge Wharf
      • Cladding scandal
      • Competition and Markets Authority / OFT
      • Commonhold
      • Communities Select Committee
      • Conveyancing Association
      • Countrywide
      • MHCLG
      • E&J Capital Partners
      • Exit fees
      • FirstPort
      • Fleecehold
      • Forfeiture
      • FPRA
      • Gleeson Homes
      • Ground rent scandal
      • Hanover
      • House managers flat
      • House of Lords
      • Housing associations
      • Informal lease extension
      • Insurance
      • IRPM
      • JB Leitch
      • Jim Fitzpatrick MP
      • John Christodoulou
      • Justin Bates
      • Justin Madders MP
      • Law Commission
      • LEASE
      • Liam Spender
      • Local authority leasehold
      • London Assembly
      • Louie Burns
      • Martin Paine
      • McCarthy and Stone
      • Moskovitz / Gurvits
      • Mulberry Mews
      • National Leasehold Campaign
      • Oakland Court
      • Park Homes
      • Parliament
      • Persimmon
      • Peverel
      • Philip Rainey QC
      • Plantation Wharf
      • Press
      • Property tribunal
      • Prostitutes
      • Quadrangle House
      • Redrow
      • Retirement
      • Richard Davidoff
      • RICS
      • Right To Manage Federation
      • Roger Southam
      • Rooftop development
      • RTM
      • Sean Powell
      • SFO
      • Shared ownership
      • Sinclair Gardens Investments
      • Sir Ed Davey
      • Sir Peter Bottomley
      • St George’s Wharf
      • Subletting
      • Taylor Wimpey
      • Tchenguiz
      • Warwick Estates
      • West India Quay
      • William Waldorf Astor
      • Windrush Court
  • Parliament
  • Accreditation
You are here: Home / News / CentreForum think tank urges £2 per flat owner to regulate leasehold

CentreForum think tank urges £2 per flat owner to regulate leasehold

August 20, 2012 //  by Sebastian O'Kelly

The leasehold sector “is not fit for purpose” and requires immediate regulation that could be paid for by a charge of £2 per leaseholder, according to the CentreForum report published today.

An independent regulator – that is, not one originating from the compromised existing trade bodies in the sector – would ensure all managing agents meet minimum standards of professionalism and competence.

In addition, they would have to be members of an ombudsman service which, unlike that adopted by estate agents, would “deliver public judgements”.

In addition, the Leasehold Valuation Tribunals, where disputes have increased four fold since 2002, should be reformed and “deliver a fairer service”, says the influential think tank which is supported by politicians from all the leading parties.

The Leasehold Knowledge Partnership’s contribution to the report is acknowledged and it is referred to on multiple occasions.

It is also noted that there is near universal support for leasehold regulation, which is opposed solely by Housing Minister Grant Shapps.

The CentreForum report notes the inconsistency of Shapps’ stance given his own enthusiasm for park home regulation, which he is introducing [see earlier LKP post below].

On LVTs, CentreForum says: “The rules on information disclosure should be amended to ensure that all parties have all relevant details in advance of a case. To reduce brinkmanship, freeholders objecting to a Right to Manage (RTM) / lease extension / enfranchisement application should specify grounds for doing so before a leaseholder approaches the tribunal.

“The 20C order, which prevents freeholders from reclaiming their LVT costs
retrospectively through service charges, should be used automatically unless the freeholder can prove that they should be able to reclaim charges.”

The process of right to manage, where leaseholders can take control of management in certain circumstances, should be promoted by putting information notes on all service charge demands.

The threat of property forfeiture by a landlord in a dispute should be removed as “disproportionate”, and property should be sold on the open market if a leaseholder loses a major civil action.

The right of landlords to claim fees for property improvements, such as conservatories and en suite bathrooms, should be ended, unless it can be demonstrated that the works actually reduce a property’s value.

The study urges the adoption of commonhold property tenure rather than perpetuating the problems of leasehold.

“Commonhold – a system of ownership which allows individuals to own properties with common areas in perpetuity and collectively control their management – was created in 2002 but evidence from the Leasehold Knowledge Partnership shows that today only 15 developments use this form of ownership despite its significant advantages. This represents a major market failure. It is almost impossible for existing leasehold properties to convert because they require unanimous leaseholder support and developers prefer to build properties as leasehold rather than commonhold because it is familiar and allows them to sell both the leasehold and freehold.”

Politicians of all parties welcomed the report.

Sir Peter Bottomley, Conservative MP for Worthing West, said: “Leaseholders need far greater protection. At present there is legal torture of vulnerable groups including elderly, frail people on limited incomes and often limited life expectancy. Regulation and reform are urgently required. Everyone committed to fair dealing will welcome CentreForum’s proposals. Government and parliament must act.”

Simon Hughes, MP for Southwark and Bermondsey and Deputy Leader of the Liberal Democrats, said: “Reform of the leasehold system is well overdue. Leaseholders with private and public sector freeholders must be given a greater say in how their homes are managed. I support CentreForum’s report, which offers innovative solutions to improve life for leaseholders.”

Barry Gardiner, Labour MP for Brent North, said: “There is a real sense of growing momentum and cross party consensus on this issue. It is now time to revisit leasehold reform. These proposals would cost the government nothing and would at a stroke transform the lives of millions of leaseholders.”

Mark Field, Conservative MP for Westminster and the City, said: “I have seen relationships between leaseholders and the owners of their freehold that work well. But all too often I am shown instances where the balance of power in those relationships is dangerously out of kilter, delivering hopelessly poor value to leaseholders. I welcome CentreForum’s report, which seeks to address this imbalance in the leasehold system.”

The full report is below
CentreForum

Related posts:

Default ThumbnailCountdown to a media storm over leasehold Default ThumbnailCentreForum think tank ponders leasehold Default ThumbnailRadio Four Today programme highlights leaseholder “rip-offs” ‘Guesstimate’ £50,000 new roof blamed for death of leasehold owner aged 93 Why has it taken so long to regulate the leasehold sector?

Category: News

Latest Tweets

Tweets by @LKPleasehold

Mentions

Anthony Essien (34) APPG (37) ARMA (87) Bellway (30) Benjamin Mire (32) Cladding scandal (71) Clive Betts MP (31) CMA (45) Commonhold (52) Competition and Markets Authority (41) Countryside Properties plc (33) FirstPort (42) Grenfell cladding (56) Ground rents (54) Harry Scoffin (150) James Brokenshire MP (31) Jim Fitzpatrick (35) Jim Fitzpatrick MP (30) Justin Bates (40) Justin Madders MP (67) Katie Kendrick (37) Law Commission (60) LEASE (66) Leasehold Advisory Service (62) Leasehold houses (32) Long Harbour (48) Martin Boyd (80) McCarthy and Stone (39) National Leasehold Campaign (38) Persimmon (49) Peverel (61) Property tribunal (49) Redrow (30) Retirement (37) Robert Jenrick (33) Roger Southam (47) Sajid Javid (38) Sebastian O’Kelly (55) Sir Peter Bottomley (201) Taylor Wimpey (106) Tchenguiz (33) The Guardian (33) The Times (31) Vincent Tchenguiz (43) Waking watch contracts (40)
Previous Post: « ‘Some of the worst spivs in property are in leasehold,’ LKP tells The Times
Next Post: The Guardian takes up issue of leasehold »

Reader Interactions

Comments

  1. Karen

    August 20, 2012 at 8:32 pm

    We all need to keep the momentum up now and get Shapps to regulate. It is long overdue. How can he say there is no problem….. where has he been for the last 7 years?….

Above Footer

Advising leaseholders. Avoiding disasters.
Stopping forfeiture. Exposing abuses. Urging reform.

We depend on individuals for the majority of our funding.

Support Us and Donate

LKP Managing Agents

Become an LKP Managing Agent

Common Ground
Adam Church
Blocnet property management2

Stay in Touch

To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter.
Sign Up for Newsletter

Professional Directory

The following advertisements are from firms that seek business from leaseholders.
Click on the logos for company profiles.

Footer

About LKP

  • What is LKP
  • Privacy and data

Categories

  • News
  • Cladding scandal
  • Commonhold
  • Law Commission
  • Fleecehold
  • Parliament
  • Press
  • APPG

Contact

Leasehold Knowledge Partnership
Open Data Institute
5th Floor
Kings Place
London N1 9AG

sok@leaseholdknowledge.com

Copyright © 2023 Leasehold Knowledge Partnership | All rights reserved
Leasehold Knowledge Partnership Limited (company number: 08999652) is a company limited by guarantee that is a registered charity (number: 1162584) with the Charities Commission.
LKP website is hosted at www.34sp.com
Website by Callia Web