Regulation of managing agents

Breaking news … Sajid Javid announces the regulation of managing agents at the ARMA conference …

Some excerpts and a summary of the key points from his speech appear below:

The Grenfell disaster is something 'without parallel' .. the sector of property management is under scrutiny

Moving on from the White Paper (Fixing our Broken Housing Market), the government is looking at the issue of management and property like never before.

The ARMA code is a positive and the ARMA members are the 'good guys' .. unfortunately there are also 'the bad guys'

Some rogue agents over-charge, there are instances of excessive insurance commission. Evidence of items has not assisted – such as a fire escape being charged at three times the right price, and under a contract handed to the manger's brother.

These sorts of examples are ripe for some intervention. Estimated over charging could be in the order of £1.4 BN per year.

Anyone can be a managing agent. No checks whatsoever. This is not what the public expect.

The system is stacked against tenants, and there needs to be redress.

The Right to Manage process should be simplified. There are too many chances for a challenge from the landlord.

There are issues for management on shared estates. House owners on such developments have no easy right of redress against the deficiencies in their service charges.

This is supposed to be the age of the 'educated consumer' – the current situation does not promote consumer choice.

Regulation has been announced for letting agents and there will redress for the problems of leasehold houses and ground rents, particularly in relation to new build property.

Publishing today a call for evidence on the question of property management.

How to ensure fairness and openness?

Arma Q has done a lot, but has this gone far enough?

The paper that has been published will set out proposals for the regulation of property management. Details are going to be on the departmental website.

The government wants to remove 'petty restrictions' but wants to avoid cowboy operators.

The current situation penalises the good guys. We need to see regulation. Appropriate regulation will force the poor operators out of the market.

The private rented sector and justices use of leasehold does a lot of good, but further regulation is required.

Mark Chick