Law Commission to review right to manage

In December 2017, the Law Commission announced its 13th programme of law reform. On the Law Commission’s agenda as part of this programme of reform is a project on residential leasehold and commonhold. This project aims to improve consumer choice, provide greater fairness, and make the process of enfranchisement easier, quicker and more cost effective.

On 4th July the Housing Secretary, James Brokenshire, announced that he has asked the Law Commission to look at improving the laws which allow leaseholders to manage their own buildings via the right to manage process.

 

The current position

Under the Commonhold and Leasehold Reform Act 2002 (and subject to meeting certain qualifying criteria and getting the processes right) leaseholders have the ability to acquire the right to manage their building. In doing so they take over the management functions.

In 2014, the CMA estimated that there were 4,500 right to manage companies.

Law Commissioner Stephen Lewis has said:

“… the law isn’t working as it should be and leaseholders are missing out on their right to manage. We’ll be looking to get to the bottom of why that is, and come up with reform recommendations that work for everyone”.

 

What next?

As a result, the MHCLG has asked the Law Commission to look at the law and come up with reform recommendations to improve how right to manage works in practice.

The twelve month project will start now, and a public consultation on provisional proposals will be launched later in the year.

Watch this space…..

 

8 July 2018

Cassandra Zanelli

Widely recognised for her expertise in the industry, and listed among the 100 most influential people in residential leasehold management, Cass heads the team at PM Legal Services. Passionate about education and sharing knowledge, she's a regular speaker at conferences, events and seminars, having worked with leading organisations in the property management industry.

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