Siobhan McGrath, Senior President, Residential Property Tribunal Service - Interview 

“RPTS is able to settle a wide range of disputes, including disputes over rents under regulated and some assured tenancies, leasehold enfranchisement and service charges,” says McGrath.

“Rent disputes are dealt with by a rent assessment committee (RAC), and disputes arising from leasehold matters are decided by a leasehold valuation tribunal (LVT). Next year there will be a third variant - residential property tribunals (RPT) for a variety of new jurisdictions that will come to RPTS under the Housing Act 2004.

“While all rental disputes are heard free of charge, some leasehold cases incur an application and hearing fee. Leasehold disputes may also be more complex, requiring greater preparation and possibly expert witnesses and legal representation.

“Members of RAC’s and LVT’s are expert lawyers and surveyors with a knowledge of local property markets, together with lay representatives. Hearings are held locally to the property in dispute and are usually accompanied by an inspection.”

How has the Commonhold & Leasehold Reform Act affected the work of the RPTS?

“The implementation of the Commonhold and Leasehold Reform Act 2002 (CLARA) has granted the Residential Property Tribunal Service increased powers to decide on a wider range of cases,” explains McGrath.

New powers cover several areas. Take service charges: the LVT now has much wider powers to decide whether service charges are payable including decisions on whether the costs are reasonable, the standards of work are reasonable and whether the lessees have been properly consulted.

- Variation of leases – the power to vary defective leases, which was previously exercised by the County Courts, has been transferred to the LVT.

- The right to manage – wider rights for lessees of flats to manage their own properties have been introduced. The LVT will decide on disputes between landlords and the new Right to Manage companies.

- Administration charges – the LVT can decide whether other charges under a lease (eg. A landlord’s costs associated with giving consent to sell the flat) are payable and/or reasonable.

“In terms of enfranchisement, CLARA has brought about a relaxation of the qualification requirements required to purchase a freehold, but the LVT will continue to settle disputes on leasehold valuations,” says McGrath.

The LVT has an obligation to consider all breaches of contract before a section 146 notice can be served. Will this not lead to delays and perhaps prejudice the interests of other leaseholders who may be suffering at the hands of their neighbours? (e.g. say one leaseholder is creating a noise nuisance, previously the managing agent could issue a section 146 notice and apply for forfeiture).

“Each forfeiture case which is referred to an LVT will be looked at individually and appropriate directions for hearing given,” explains McGrath. “If the parties make it clear that the case is urgent then it may be possible to expedite the hearing and determination. However, it is always necessary to ensure that both sides have a fair opportunity to present their case.”

In general, costs are not awarded in LVT cases. Any leaseholder can make an application, have it heard and, providing s/he deals with it properly, no adverse costs order will be made (unless frivolous/vexatious). However, the managing agent may incur significant costs in defending the case and ultimately it may reach a point where it will not be cost effective for the management company to be able to afford to defend the case. Is this fair? Should costs be more readily available?

“The LVT is a "no costs" jurisdiction,” says McGrath. “This reflects its status as a tribunal instead of a court. The government has decided that this is a sensible and accessible alternative to the court for residential leaseholders and landlords. The LVT is an expert Tribunal and is used to dealing with parties who are unrepresented.

The LVT has been accused of leaning towards leaseholders in the decisions it reaches. How can it be seen to be more impartial?

“RPTS is entirely impartial between landlords and leaseholders. There is no evidence whatsoever that we lean towards one side or the other.”

There is minimal filtering of cases which come before the LVT, aside from case management conferences. Should there not be conciliation officers, like in other tribunal situations, such as employment tribunals, to help cases be resolved before they reach trial?

“We hold preliminary hearings, where questions of our jurisdiction – that is­ our power to make a decision in an individual case - arise. We also hold pre-trial reviews where necessary so that full hearings can concentrate on the essential issues at stake.

“In London, we have just started a pilot project where we offer parties the option of mediation in service charge disputes. If it is successful, we will roll it out nationally and possibly extend it to other forms of dispute.”

Are there any regional differences that have been noticed in the types of cases, the types of decisions and the ways in which cases are managed?

“London and the Midlands generate the most leasehold cases, reflecting property tenure patterns in these regions. But all cases are handled consistently between regions, though each case will be judged on its merits.”

What does 2005 hold for RPTS?

“After a very busy 2004, when RPTS experienced a rise of 89% in the number of leasehold cases it heard, a further, but much smaller, rise is expected in 2005 as increasing numbers of landlords and lessees discover the cost effective and accessible service that RPTS can offer.

“It is an exciting time for the RPTS and, following the success of the new jurisdictions given to us in the Commonhold & Leasehold Reform Act, we will receive further powers during the coming year as a result of the Housing Act 2004. In particular, we will continue our work to raise awareness of our powers, and hope that many more people who may be locked in costly and time-consuming disputes will be encouraged to employ our user-friendly resolution services. We undertook a host of projects throughout 2004 to make the service even more accessible to first time users, such as the introduction of new procedural booklets, a guidance video and national helpline (0845 600 3178), and we will be continuing to build on this work throughout 2005. In London, we are pioneering an informal mediation service for users in service charge disputes, which could forestall the need for a formal hearing in some cases.

“As ever, we hope our biggest achievement will be to continue funding a high quality, cost effective, fair and accessible tribunal service which helps relieve the high level of stress and worry which can often be a big part of any housing dispute.”

Siobhan McGrath – the Career and the Woman

Siobhan McGrath is a barrister. Originally she is from Middlesbrough.
Between 1977 and 1980 she studied law and social sciences at the University of Sussex. Called to the Bar in 1982, she practised predominantly in landlord and tenant and housing law until 1998. For a time she was also a part-time lecturer at the London School of Economics and joint editor of the Housing Encyclopedia and Housing Law Reports. In 1999 she joined the London Rent Assessment Panel as the lawyer Vice President. Following a Financial Management and Policy Review of the Panels by the then DTLR, she was appointed as Senior President of the Panels and the Residential Property Tribunal Service.

Siobhan has four children, aged between 18 and 10. She lives in South London and spends her spare time with her family, friends and enjoying music and reading.