Is your residents association formally recognised?

 Advantages of Recognition

Recognised Residents’ Associations are entitled to:-

• Obtain information about service charge accounts;

• Be consulted about the landlord’s choice of appointing managing agents;

• Be notified by the landlord of proposed major works and receive copies of estimates etc.

• Submit details of contractors which the landlord must consider before embarking on major work projects;

• Appoint a surveyor under the Housing Act 1996 for the purposes of a management audit

Gaining recognition

There are two ways in which a residents’ association can obtain recognition:-

1. A written notice to this effect is given by the landlord to the secretary of the residents’ association; or

2. A certificate to this effect is issued by the local Rent Assessment Committee.

A landlord’s certificate is usually valid indefinitely unless the residents’ association is given six month’s notice of the landlord’s intention to withdraw it. 

Local Rent Assessment Panels will issue recognition certificates to any properly constituted association.  The certificate usually last for four years, after which, the residents’ association should seek its renewal. 

Application procedure

If the landlord refuses or ignores the associations’ request for recognition, an application should be made to the local Rent Assessment Panel including a list of member flats and the associations’ Constitution and Rules.  There is no charge to apply, but each party should be able to meet their own costs. 

 Obtaining Statutory Recognition

The granting of recognition is at the discretion of the reviewing Panel.  Guidelines were issued by the Department of the Environment in 1980. To qualify, an association must meet certain conditions specified by the Office of the Deputy Prime Minister and the Welsh Assembly Government.  In particular, the associations’ Constitution and Rules must be “fair and democratic” and should cover, amongst other matters, the following:-

• Openness of Membership - an elected committee including a secretary, chairman and other officers;

• Payment and the amount of subscription and obligatory Annual Meetings;

• Independence from the Landlord – membership open to all tenants, including sub-tenants but denied to the landlord and his employees;

• Notice of Meetings – voting arrangement and quorum.

Generally, the Panel would expect the Membership to be no less than 60% of those qualifying to join the association.  In special cases a lower percentage may be acceptable - for example, where a block has an association recognised by the landlord but considered unsatisfactory by the tenants wishing to form a new one.

For further information regarding this article, contact Roger Hardwick, Head of Leasehold Enfranchisement, Brethertons Solicitors.