The government has recognised that Right to Manage (RTM) as it currently stands is expensive, time consuming and complicated. Ian Hollins of Clear Building Management discusses the proposals to reform RTM and explains how leaseholders can have their say.
Right to Manage
Right to Manage was introduced in 2002 giving leaseholders the right to take control over the management of their property from the landlord. Through RTM, leaseholders can exercise the ‘no-fault’ right without having to prove mis-management by their landlord.
The system has long been criticised for being too expensive, slow and restrictive and has therefore ignited the government to rethink the process. To learn more about Right to Manage itself, have a look at some our other blogs on the topic here and here.
The Law Commission has now revealed a set of reforms to make the process easier for leaseholders to take control of the day-to-day management of their building. The 22-page summary sets out a variety of suggested changes from relaxing the qualifying criteria and simplifying the paperwork, to giving the tribunal exclusive jurisdiction over RTM disputes.
What could change?
The commission has proposed that RTM will be extended to houses and mixed estates, a welcome change as many of these are paying disproportionately high management fees to freeholder appointed agents.
Applications will also be able to be made for multiple blocks.
What is missing from the proposals?
One of the other aspects of RTM that causes the system to be slow and restrictive is the lack of availability of leaseholder contact details.
We would like to see a mechanism to allow leaseholders, who wish to exercise the RTM, access to the contact details of their fellow leaseholders. This process could be managed by the Property Tribunal, and place a requirement on the current managing agent to provide contact details in a secure fashion.
This measure would allow leaseholders in favour of RTM a fair chance of securing the required support.
How to contribute to the RTM consultation process
As a managing agent that is 100% leaseholder focused, we welcome the proposals to make it easier for leaseholders to take control of their development through Right to Manage, and we encourage you all to contribute to the consultation process.
To have your views heard, take part in the consultation here: https://www.lawcom.gov.uk/project/right-to-manage/
The consultation is open until 30th April 2019.
Choose Clear Building Management to manage your block and we will guide you smoothly through the RTM process. Find out more.