Property Agents: Registration

Lord Shipley Excerpts

Wednesday 18th October 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

I thank the noble Baroness, who I know understands the consumer sector and certainly knows this area well. I am grateful for her constructive contribution. I had not spotted that my noble friend Lady Hanham is in her place. It is a great pleasure to see her and I fully acknowledge the massive role that she has played in this matter.

On the point about management companies, the noble Baroness is right. I know something about company law and how companies are often used as a way of circumventing, sometimes intentionally and, in fairness, sometimes accidentally, obligations and occasionally rights that are bestowed. That should not be happening, so I am happy to undertake that we will look at how to ensure that it does not in this area. I also reiterate her point about the sector’s welcome for this development —indeed, the welcome it has already had. I will be getting them on to the noble Lord, Lord Kennedy, to make sure that some of that enthusiasm rubs off. It is important that we move forward together in this area.

[Lord Shipley (LD)]

My Lords, can the Minister clarify whether the scope of the Statement includes arm’s-length management organisations, which manage local authority housing? I should remind the House that I am a vice-president of the Local Government Association. ALMOs provide services to those who have exercised the right to buy, particularly in blocks of flats. I think the Statement is about managing and letting agents, but it does state that it is also about protecting consumers. The Statement says that the Government are asking everyone who is paying service charges to comment, which implies that ALMOs are included. This is a very important issue, which would benefit from ministerial clarification as soon as possible.

[Lord Bourne of Aberystwyth]

My Lords, it is important to state, as I think I have, that this is very much rooted in the private rented sector, so it is on private sector rented management agents that we are expecting contributions. However, within that there is considerable scope for people to give us their views on all the issues relating to transparency, redress and so on. We look forward to a thoroughgoing review of the sector and to receiving a considerable response by the end of November so that we can respond in a timely way. Then, with the approval and support of the House, we will work together to move things forward.