Leasehold and Freehold Reform Act 2024

Prospective

100 Leasehold and estate management: redress schemes E+W

(1) The Secretary of State may by regulations require a person that carries out estate management in respect of a dwelling in England in a relevant capacity to be a member of a redress scheme.

(2) A person carries out estate management in a “relevant capacity” if they do so—

(a) as a relevant landlord of the dwelling, or

(b) as an estate manager.

(3) But a person may not be required to be a member of a redress scheme under this section if they carry out estate management only—

(a) as a tenant, or

(b) as an agent.

(4) A “redress scheme” is a scheme—

(a) which provides for a complaint against a member of the scheme made by or on behalf of a current or former owner of a dwelling in relation to which estate management is carried out to be independently investigated and determined by an independent individual, and

(b) which is—

(i) approved by the lead enforcement authority for the purposes of regulations under subsection (1), or

(ii) administered by or on behalf of the lead enforcement authority and designated by the lead enforcement authority for those purposes.

(5) Regulations under subsection (1) may require a person to remain a member of a redress scheme after ceasing to be a person mentioned in that subsection, for a period specified in the regulations.

(6) Before making regulations under subsection (1), the Secretary of State must be satisfied that all persons who are to be required to be a member of a redress scheme will be eligible to join such a scheme before being so required (subject to any provision in the scheme about expulsion, as to which see section 103(3)(l)).

(7) For potential consequences of breaching regulations under subsection (1), see—

(a) section 24(2)(ad) of the LTA 1987 and section 92(3)(e) of this Act (appointment of manager by tribunal);

(b) section 105 of this Act (financial penalties by enforcement authorities).

(8) In this Part—

• “estate management” means—

  (a)

  the provision of services,

  (b)

  the carrying out of maintenance, repairs or improvements,

  (c)

  the effecting of insurance, or

  (d)

  the making of payments,

  for the benefit of one or more dwellings;

• “estate manager” means a body of persons (whether incorporated or not)—

  (a)

  which carries out, or is required to carry out, estate management, and

  (b)

  which recovers the costs of carrying out estate management by means of relevant obligations;

• “the lead enforcement authority” means either—

  (a)

  the Secretary of State, or

  (b)

  another person designated by the Secretary of State as the lead enforcement authority,

  and see section 108 for further provision about the lead enforcement authority;

• “relevant landlord”, in relation to a dwelling, means a landlord under a long lease of the dwelling;

• “relevant obligation”, in relation to a dwelling, means each of the following—

  (a)

  a rentcharge which—

  (i)

  is charged on or issues out of the land which comprises the dwelling or a building of which the dwelling forms part, and

  (ii)

  is an estate rentcharge by virtue of section 2(4)(b) and (5) of the RA 1977;

  (b)

  an obligation under a long lease of the dwelling;

  (c)

  any other obligation that—

  (i)

  runs with the land which comprises the dwelling or a building of which the dwelling forms part, or

  (ii)

  otherwise (whether in law or in equity) binds the owner for the time being of the land which comprises the dwelling;

  (d)

  any other obligation—

  (i)

  to which the owner of the dwelling is subject, and

  (ii)

  to which any immediate successor in title of that owner will become subject, if an arrangement to which a relevant landlord or an estate manager and that owner are parties is performed.

(9) The arrangements that are within paragraph (d) of the definition of “relevant obligation” include an arrangement under which the owner is required (in particular by a limitation on transfer of title to the dwelling or on registration of a transfer of title) to ensure that any immediate successor in title to the owner enters into an obligation.

(10) The Secretary of State may by regulations make provision (including provision amending this Act) for the purpose of changing the meaning of “relevant capacity”, “relevant landlord” or “relevant obligation”.

(11) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.

Commencement Information

I1 S. 100 not in force at Royal Assent, see s. 124(3)