23 March 2015
- 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.
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
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.