Leaseholders and Property Management Companies

Lord Berkeley of Knighton Excerpts

Thursday 29th April 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend will know that there are various reasons leaseholders may exercise the right to manage, and the Government are committed to simplifying the process. I point out that many right-to-manage companies choose to employ a managing agent. In response to his second point, the Government intend to require freeholders of leasehold properties who do not employ a managing agent to join a redress scheme, and we will bring forward legislation when parliamentary time allows.

[Lord Berkeley of Knighton (CB) [V]]

My Lords, I declare my interest as listed in the register. Is the Minister aware that, in order to get the necessary certification for electricity, gas or water, for example, landlords are required to get services tested? I have heard many examples of deficiencies being exaggerated, and then quotes being given to remedy the situation that are vastly disproportionate—engineers have proved this later. I worry that many innocent people may not realise this is happening.

[Lord Greenhalgh (Con)]

My Lords, I am aware that there are sharp practices across the board. But, by law, service charges and other charges have to be reasonable, and costs have to relate to the work or services undertaken, which need to be of a reasonable standard. We will take the noble Lord’s point and advice to see how we can address that issue.