Government has published new evidence on regulation in the leasehold property market, after releasing a public survey that produced results from over 6,000 individuals.
The call for evidence sought insight as to whether a new regulatory model suited for agents in the leasehold sector needs to be looked at.
‘Protecting consumers in the lettings and managing agent market’ is the evidence call title, in which the Government is looking for views as to whether there needs to be a repair of regulation in the property agent market.
In addition to this, they are exploring measures to empower leaseholders by making the process of switching agents easier, In an attempt to reduce costs.
Sajid Javid, Secretary of State for Communities & Local Government, made a comment on 18th October, claiming property management is still ‘living in the past’. He wants to see ‘plans to regulate letting agents, including banning fees for tenants.’
According to The Competition and Markets Authority, service charges could amount to around £3.5billion per year, as well as a potential £1.4billion that could have been overpaid by consumers for managing agent services.
This new reform will benefit consumers, but may create opposing opinions between those practicing conveyancing – particularly about:
- Costs and timing of providing information for buyers, as well as;
- Delays in providing consents to lift restrictions that have been registered at HM Land Registry.
The scheme will run starting 18 October till 29 November, the government saying it will forward detailed proposals as early as next year.
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