Housing: Managing Agents

Lord Best Excerpts

Tuesday 17th January 2012 Lords Chamber

[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.

[Lord Best]

My Lords, I declare my interest as chairman of the council of The Property Ombudsman, which listens to complaints against managing agents. Although the Minister is probably against regulation of this sector, does she agree that it would be a good idea if it was compulsory for all managing agents to belong to an ombudsman scheme that can resolve disputes between residents and managing agents without the need to go to court?

[Baroness Hanham]

My Lords, I do not think that we would want to compel managing agents to do that, but I agree that it would be very helpful if they would voluntarily ensure that they are members of the ombudsman scheme, which is very valuable in terms of leaseholders being sure that they are getting and can get proper access to advice.