Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will take steps to review the (a) extent and (b) implications of property managing agents' use of embedded management agreements as a substitute for leasehold agreements; and if he will make a statement.

The Government is committed to promoting fairness and transparency for homeowners and renters and making sure that consumers are protected from abuse and poor service. This commitment includes raising professionalism and standards amongst managing agents, protecting consumers while defending the reputation of good agents from the actions of rogue operatives.

Leaseholders purchasing a property will enter into a lease agreement with the freeholder. A property or managing agent may also be named in the lease, and leases may have an exit clause which determines how and when to manage or replace the managing agent. However, leaseholders can take action if they are concerned with the poor performance of a managing agent. They may complain to the relevant Government-approved redress scheme to which a managing agent must belong. Furthermore Section 24 of the Landlord and Tenant Act 1987 gives the tribunal the power to appoint a manager to take over the landlord's right to manage the building where there has been a significant management failure by the existing managing agent or landlord.