Housing: Managing Agents

Baroness Gardner of Parkes Excerpts

Tuesday 17th January 2012 Lords Chamber

Asked By

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government whether they will introduce regulations or a code of practice to set standards for managing agents for leasehold blocks of flats.

[Baroness Gardner of Parkes]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords, there are already two codes of practice in force that can be used in evidence in a court or tribunal: the Service Charge Residential Management Code, which is published by the Royal Institution of Chartered Surveyors, and Private Retirement Housing: Code of Practice, which is published by the Association of Retirement Housing Managers. The Government recognise that problems caused by the actions of managing agents can cause leaseholders real inconvenience and distress. Landlords and managing agents must obey the law and should act in a socially responsible manner. While we have no plans for a wide-ranging review of leasehold law, we are keeping a close watching brief and will not rule out making changes.

[Baroness Gardner of Parkes]

Can the Minister tell me what rights leaseholders have to be assured that managing agents carry out regular assessments of property condition and arrange necessary repairs for works in blocks of flats? Are the agents responsible for ensuring that any work done is carried out to a satisfactory standard?

[Baroness Hanham]

My Lords, managing agents are employed by the freeholders, although leaseholders have rights as to what they are being charged for and the work that is being done. We believe that any managing agent acting on behalf of a landlord owes a duty of care to leaseholders. Reasonable steps should be taken to ensure that all work is done properly and safely. Leaseholders of course have a right to challenge the management of their blocks and the people who are doing it through the leasehold valuation tribunal.