Landlords are routinely failing to carry out Section 20 consultations, where landlords should consult leaseholders before starting major works.
The Leasehold Advisory Service (LEASE), a government-funded advisory body providing trusted, found that nearly a third (31%) of enquiries raised concerns about landlords failing to follow the mandatory Section 20 consultation process, while one in seven (15%) related to landlords seeking exemptions altogether, leaving leaseholders with little say or no say in the significant costs they need to cover.
Martin Boyd, chair of LEASE, said: “While landlords are supposed to face penalties for not completing a Section 20 consultation, a 2013 Supreme Court judgement made it easier for landlords to avoid consulting leaseholders before major works and still make them pay.
“We believe this judgement is being misused by landlords and driving these complaints from leaseholders. Leaseholders need more power to hold their landlords to account.”
Common additional complaints include: Landlords obstructing leaseholders accessing information, using the requirement for documents to be sent as a hard copy by post; deliberately vague descriptions of work from freeholders, with catch-all phrasing being used to include a wide variety of activity and potential costs; and the provision of an overwhelming amount of technical information, discouraging alternative providers and inhibiting leaseholders’ ability to scrutinise.
While many of LEASE’s clients agree that Section 20 consultations provide a useful function, the report also spotlights leaseholders’ concerns with the monetary limits that trigger the process.
The cost of major works today doesn’t reflect the consultation thresholds set over 20 years ago, which include £250 for one off works and £100 for ongoing services.
This is increasing the number of consultations, which leaseholders describe as counterproductive and unnecessary.
LEASE recommended: increasing monetary consultation limits; Reducing landlords’ ability to dispense of consultations and strengthening leaseholders’ power to challenge; and setting out clear standards for information sharing and allowing for modern methods of document sharing.
Martin Boyd, chair of LEASE, said: “Although leaseholders see the value in a process to consult them about major works on their property, it is clear there are fundamental issues with the current consultation process and many landlords are acting with impunity.
“With current legislation favouring landlords and making it difficult for leaseholders to challenge those who obstruct or circumnavigate Section 20 consultations, leaseholders tell us they do not feel they have the power or resources to dispute.
“The government needs to ensure the system is fair for all parties. We have provided these insights to the government as part of its current consultation on strengthening leaseholder protections on charges and services.”