Leasehold Properties: Managing Agents

Lord Kennedy of Southwark Excerpts

Monday 17th July 2023 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to regulate managing agents who manage leasehold properties on behalf of freeholders while being paid by leaseholders.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I refer the House to the register of interests and the fact that I am a leaseholder.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we are committed to raising standards and professionalism within the property management sector. Managing agents in England and Wales must belong to one of the two government-approved redress schemes. Leaseholders can also apply to the First-tier Tribunal to appoint a manager where there is significant management failure. We will continue to work with the industry on improving best practice, including in relation to the codes of practice. Announcements will be set out in the usual way.

[Lord Kennedy of Southwark (Lab Co-op)]

I thank the Minister for that response. There is a desperate need for a regulator with real teeth to ensure that managing agents treat leaseholders fairly and are open about their charges; that there is a proper redress scheme in place, with real powers to take remedial action against those who rip people off; and that, in the worst cases, they can be removed from the industry. Does the Minister agree with me that that is the way forward?

[Baroness Scott of Bybrook (Con)]

I agree with the noble Lord. That is exactly what we are doing. The commitment includes raising professionalism and standards among property agents. As I am sure the noble Lord knows, the noble Baroness, Lady Hayter, and RICS, which she is working with, will meet the Housing Minister to discuss a code of practice for property agents. I thank the noble Baroness for all the work she is doing on this, and I welcome her excellent stewardship of the independent steering group as we strive to promote best practice among property agents in future.