Housing: Managing Agents

Lord Shipley Excerpts

Tuesday 17th January 2012 Lords Chamber

[Baroness Hanham]

My Lords, I acknowledge that it is probably not very easy, but I do not acknowledge that there are no routes for dissatisfied leaseholders. They have access to the lease valuation tribunal if they have concerns, particularly about charges. They also can go to LEASE if they are concerned about the way in which their property is being managed. It requires at least one person in the property to be in charge of the residents and how they feel in order to make sure that they follow the routes that are already open to them.

[Lord Shipley]

My Lords, is the Minister aware of the report published last year which showed that some leaseholders were paying far too much in property insurance to managing agents and that, as a consequence, regulation would most certainly help? In addition, might it be for government to promote the right to manage to leaseholders groups in blocks of flats, so that they themselves can reduce the costs that they have to bear?

[Baroness Hanham]

My Lords, the matter of commission is already being investigated as there have been many complaints about it. As I understand it, the commission of, for example, insurance would not appear on the service charge but could form another charge that the leaseholders have to pay. I think that most leaseholders need to have a tenants association within their blocks of flats or wherever they live to ensure that they do have some muscle with poor managing agents and that they can then use the routes that are, as I said, there for them.