A new lease of life: - CentreForum

A New Lease of Lifeimprovement it would bring in terms of quality and value of servicewould more than justify the costs. Greater direct leaseholderempowerment should also be promoted by taking steps (outlinedin Chapter 6) to encourage the process of ‘Right to Manage’ (RTM)and the long-term expansion of commonhold.The Department for Housing’s current priority appears to beexpanding the supply of homes, which is clearly necessary. Butpursuing this at the expense of leasehold reform could be costly inthe long run for two main reasons.First, problems within the leasehold system, particularly withconnected companies, have become more pervasive sincegovernment last addressed leasehold tenure in 2002. Complaintsabout managing agents have risen sharply and the overall numberof cases taken to LVTs has more than quadrupled in the pastdecade. 6 While problems with managing agents have been tackledby the Scottish and Irish governments in recent years, regulation inEngland and Wales remains conspicuous by its absence. 7Second, reform is also needed because the number of peopleliving in leasehold properties – currently up to 5 million – isrising. The government is committed to ‘unlocking’ the housingmarket, and leasehold properties will be an important part of this.The reinvigorated right-to-buy scheme is already creating moreleaseholders. As Britain’s population becomes more urbanised andlife expectancies grow, there will be more demand for leaseholdflats, particularly in the retirement sector. In London alone it isexpected that 320,000 new homes will be built in the next ten years,of which the “majority” sold will be leasehold flats. 8 Leaseholdreform should therefore be a priority alongside increasing housingsupply and will avoid creating greater problems in the future.6 Figures from the Residential Leasehold Property Tribunal Service.7 The Scottish Government introduced the Property Factors (Scotland) Act 2011which compelled managing agents to be registered and comply with a codeof conduct. It also created the homeowner housing committee which offerstenants a more accessible forum at which to complain about managing agents.The Irish government has agreed to establish the National Property ServicesRegulatory Authority which maintains a licence for managing agents and offersan adjudication service.8 The London Assembly, ‘Highly charged: Residential leasehold service charges inLondon’, March 2012, p. 17.12