Leasehold enfranchisement specialist operator Leasehold Solutions is the latest to welcome the government’s suggestion of a regulatory watchdog to oversee leasehold and private rented management.
As we reported on Wednesday, the government is seeking views on whether regulatory overhaul of the sector is needed to fix the problems in the property management industry during a six week consultation.
This will also seek views on whether a new independent regulatory body is needed to oversee the leasehold sector.
“These reforms would be a welcome improvement over current legislation and would go some way to developing a fairer system and reducing the extortionate service charges that leaseholders are forced to pay just to alter or maintain their properties” says Louie Burns, managing director of Leasehold Solutions.
“However, while we welcome the government's backing for leasehold reform, we believe that far more can be done to make the system fairer. For example, one area that requires immediate attention is the flawed valuation models used to calculate the cost of lease extensions and freehold acquisitions, which favour the interests of freeholders and cause misery and profound financial hardship for many leaseholders” he adds.
The government’s consultation on its proposals outlines it wishes to end the “unjustified use of leasehold in new-build houses" and says the current system of redress "actively disempowers tenants, leaseholders and even some freeholders, stripping them of many rights and making it extremely difficult to enforce those they do have."