Government consults on recognising residents associations

Former Secretary of State for Communities and Local Government, Eric Pickles MP, sought the opinions of parties including leaseholders, landlords, freehold owners, managing agents, and trade or representative bodies during the consultation, which ran from March until May 22.

There are two ways of seeking formal recognition of a tenants’ association. Recognition can be given by a landlord or, if a landlord refuses or withdraws recognition, applications can be made to and determined by the First-tier Tribunal (Property Chamber).

The Department for Communities and Local Government (DCLG) says that although on the whole the current guidelines work well, particularly in respect of individual blocks, some difficulties can occur in larger blocks/developments and some mixed use blocks.

It says the biggest issue surrounds the guideline that the membership of a recognised tenants’ association must represent at least 60% of the flats in a block for which variable service charges are payable (i.e. flats with qualifying tenants). There have been some important cases considered at tribunal where membership has been below that threshold.

Other issues that the DCLG is looking to address include voting rights, particularly where an individual owns more than one unit in the block; whether non-resident leaseholders (i.e. tenants of shops and offices) should be allowed to be members; and whether more than one tenants’ association can operate on a single development or estate.