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Government response to CMA Leasehold Management Study 31/03/2015

ARCH Briefing 7/2015


Issued by: 
DCLG


Date issued:
23 March 2015


Key Points

 

  • DCLG will look to CIH and LGA to develop mechanisms for local authorities to share best practice in leasehold management.

 

  • DCLG will consult later in the year on proposals to improve the transparency of service charge allocation to specific blocks.


Background


During 2014, the Competition and Markets Authority carried out a market study of "residential property management services", by which it meant the management of blocks of flats let on long leaseholds.  The scope of the study included local authority and housing association alongside private freeholders.  ARCH was consulted and made an input to the study and several ARCH members were interviewed by the study team.


The CMA's findings were published in December 2014.  As well as a number of recommendations applicable to all freeholders, there were two directed specifically at local authorities:

 

  • Noting variation among local authority performance in leasehold management, the CMA recommended that local authorities should develop mechanisms to share best practice;

 

  • Local authorities should separate the costs of providing common services to leaseholders and tenants on a block basis and explain the allocation.

 

In its response, the Government has said that the sector should take the lead on the first of these.  On the second, it will consult with the HCA and local authorities and bring forward formal proposals for consultation later this year.

 

Links

 

CMA Study

Government response

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