What's going on at Oliver & Co

Could ‘Right To Manage’ become more accessible for leaseholders?

Posted on July 24th 2018

On July 4th, the Law Commission announced their 12-month project.

The project aims to establish law reform recommendations which will improve how Right to Manage works. Law Commissioner Stephen Lewis 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 is Right to Manage?

Right to Manage, or RTM, was introduced in 2002. It gives leaseholders the legal right to take over the management of their property from the landlord, or Management Company.

To use the right, leaseholders must set up a company and follow certain procedures. The company is then responsible for a number of things, including:

  • Collecting service charge.
  • The upkeep of communal areas (i.e. hallways, stairs, etc).
  • The upkeep of the building’s structure (brickwork, windows, the roof, etc).

Why is reform needed?

Housing Secretary James Brokenshire has asked the Law Commission to look at improving the RTM laws because it has become clear that the current laws are failing leaseholders. Leaseholders who have taken up the option of RTM have experienced large delays, costs, and uncertainty. This has stopped RTM from becoming widespread.

For example, in 2014 the CMA found that there was only around 4,500 Management Companies.

The project:

The 12-month project from the Law Commission has now begun. A public consultation on the provisional proposals will be launched later in the year. We hope that the proposals will lead to a better system for leaseholders in the future.

How can we help?

We offer a number of services for leaseholders, including helping them to acquire the RTM their property. You can learn more about these services here. Alternatively, contact us for free initial advice by calling 01244 312306, or filling in our contact form.

You can also read about the problems facing leaseholders here.

Call and speak to a lawyer on 01244 312306