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Grant Shapps, the Housing Minister, will not be introducing the long-awaited accounting regulations which would have afforded protection to flat owners service charge money. The announcement follows Shapps decision earlier this year not to introduce formal regulation of the property management sector. Managing agents are dismayed.  Brett Williams, Chairman of ARMA said, “….we are given to understand [Shapps] reason is to reduce the regulatory burden. On whom? The very rogues who do not handle lessee mon

Funding has been secured and a global search launched for a PhD student to carry out pioneering research to help the property industry better understand the link between customer service and property performance. Sponsorship for the three-year project will come from the Lord Samuel of Wych Cross Memorial Trust Award, together with industry contributions from RealService Ltd and the RealService Best Practice Group (RSBPG). The Trust was set up in 1989 to remember Lord Samuel of Wych Cross, founder of L

RICS has launched a consultation to tackle problems about current risk and pricing in professional indemnity insurance (PII) in the UK valuation sector that are creating market dysfunction. The quantity and cost of handling alleged negligence claims is having a significant impact on the cost of PII, not just for firms who have received claims but for the market as a whole. These structural problems could reduce client protection, limit competition within the market and lead to market failure. RICS has

The Tenant Services Authority has given its final approval for the £1.3 billion merger between Chester & District Housing Trust and Cosmopolitan Housing Group. This has created a new group of nearly 14,000 homes across Cheshire, Merseyside and the North West, placing it among the 10 largest housing groups in the region. The new Group says the merger will create improved opportunities for leasehold residents.

Unfortunately, many leaseholders undertake works within their flat which are often in breach of the terms of their leases. One common breach, is the removal of carpets and installation of wooden floors. In accordance with the terms of many leases, carpets must be laid in all areas except for the kitchen and bathroom, unless otherwise approved by the landlord. If no such consent has been granted, you could be currently in Breach of Lease. The implications of being in Breach of Lease are serious and can

It is easy to moan about how much your managing agent is charging, but have you considered what your service charge goes towards? There is a myth to dispel here: a service charge is not the amount you are paying your managing agent to look after your development. Their fee, a part of the service charge, is normally a few hundred pounds per flat per annum. The bulk of the annual service charge pays for the upkeep of the communal areas and services at your property. So why does it cost so much to live i

Members of the House of Lords have called for the law commission to simplify leasehold law. Baroness, Lady Butler-Sloss and Baroness Williams urged the Conservative Minister, Baroness Hanham to consider the Government’s position during a Parliamentary debate on consolidating all landlord and tenant legislation. Baroness Hanham admitted that, “... leasehold law in particular can be complex and people find it difficult to understand” but refused to commit to a Law Commission consultation. The Federation of

A new fund is being launched to help leaseholders, (particularly those who may be vulnerable and/or elderly), afford legal assistance to advise them on matters such as the LVT process, escalating service charges and exit fees. Called LKPaid, the fund is the brainchild of Melissa Briggs who rose to prominence for her campaigning work leading Carlex and its demands for leasehold reform. “Having exposed malpractice in the property management industry over the past few years, I set up the Leasehold Knowledg

In conjunction with News on the Block, Brady Solicitors commissioned an independent market research company to undertake an in-depth telephone survey into the changing pressures, opportunities and challenges faced by the property management industry. Over 100 of you took part during November 2011 and in this report, Brady Solicitors’ Clare Brady shares with you the highlights of these interviews. Regulation is a popular topic in the property management press, with many calling for a clearer regulatory

Peverel Scotland is urging the Scottish Executive to raise the bar on property laws with the forthcoming Property Factors Act. The company wants to stamp out practices such as underinsurance, ‘hidden’ commissions, improper accounting of service charges, and the complete lack of separate banking for clients’ funds - and for there to be tough sanctions for those that do not comply with the required standards. Keith Murray, Director of Peverel Scotland, has written accordingly to Housing Secretary Alex Reid,

The value of thousands of flat owners’ properties will reduce if they do nothing and hope for the best. Many leases are dated at the end of the quarter, particularly June and December. If your lease is below 85 years, every year the lease reduces, the cost of a lease extension or freehold purchase rises. Under 80 years, the cost rise accelerates. This can be thousands of pounds a year, eroding the underlying value of the flat over time. It is simple to preserve the value of your investment, if you act i

Frognal estate comprises five blocks totalling 54 flats. By 2009 it had been neglected for decades, there was a long history of multiple litigation between the landlord and the lessees, the lifts had been out of service for years, Enforcement Notices had been served by the Local Authority and insurance cover for water damage had been withdrawn. The Residents’ Association (FERA) applied to the LVT for a Manager to be appointed, the landlord agreed, the Tribunal approved a Management Plan, and a Specificat