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

To ask Her Majesty's Government whether they plan to recognise freehold house owners who share maintenance expenditure for communal grounds, gardens and assets on estates comprising a mixture of leasehold flats and freehold houses as distinct from normal freeholders and leaseholders; and what steps they will take to give such freehold home owners access to (1) inexpensive alternative dispute resolution processes, and (2) full consumer protection rights.

As part of the response to the consultation Tackling unfair practices in the leasehold market the Government committed to legislate to ensure that freeholders who pay charges for the maintenance of communal areas and facilities on a private or mixed tenure estate can access equivalent rights as leaseholders to challenge their reasonableness.

We set out our proposed approach to implementing these measures in part 4 of the recent consultation, Implementing reforms to the leasehold system in England, which was published on 15 October this year.

We intend to create a new statutory regime for freeholders based on the leaseholder rights contained in the Landlord and Tenant Act 1985. This will ensure maintenance charges must be reasonably incurred and services provided are of an acceptable standard

There are no plans to separately recognise freeholders who pay charges for the maintenance of communal areas and facilities on a private or mixed tenure estate and those who do not. We will provide freeholders with the ability to challenge the reasonableness of the charges they are required to pay towards the maintenance of communal areas and facilities at the First-tier Tribunal. We are also considering whether freeholders should have a right to change the provider of maintenance services by applying to the tribunal for the appointment of a new manager.

The consultation has now closed, and my officials are now analysing the responses. The Government intends to bring forward legislation to implement the changes as soon as Parliamentary time allows.

The Government has asked the Law Commission to review the existing Right to Manage legislation with a view to making the procedure simpler, quicker and more flexible. The Law Commission has been told about difficulties with managing shared property such as access roads and gardens used by other properties on the estate. They will therefore consider the qualifying criteria for Right to Manage applications to be extended to include freehold estates. The Law Commission will publish its consultation in January 2017

On 12 October, the Government announced the formation of the Regulation of Property Agents Working Group, chaired by Lord Best. Its principal aim will be to advise the Government on a new regulatory approach to letting, managing and estate agents

The Minister for Housing and Homelessness has asked the working group to look into whether fees and charges which affect both leaseholders and freeholders are justified, or whether they should be capped or banned.