The Association of Residential Managing Agents (ARMA) have met with MPs to push new legislation through parliament, in a bid to stamp out rogue property marketing agents that mismanage leaseholder’s money and property.
The chief executive officer of ARMA, Dr Nigel Glen, has advocated for better regulation of the industry with changes to the law that will raise standards in the residential block management industry.
He had asked MP Bernard Jenkin and MP Will Quince for their support in the All Party Parliamentary Group (APPG), which oversees residential leasehold and commonhold regulation.
As it stands, the industry has little control over who can enter the industry. There is no formal license, membership or professional association in place to ensure that marketing agents are qualified to look after the millions of people paying out.
“ARMA’s long term stated aim is for regulation of the industry. However, in the current absence of formal regulation, ARMA has introduced a stringent Code of Practice that all of its members must follow, supported by extensive training opportunities, enforced by an Independent Regulatory Panel and underscored using regular audits by the Royal Institution of Chartered Surveyors”, said Dr Glen.
“This gives the clients of our Members comfort that their Managing Agents are performing to the highest standards in the industry.”
Mr Quince, MP for Colchester and a former solicitor, has supported ARMA’s campaign.
He said: “I am well aware of the issues in the sector. There are strong arguments for regulation of the sector to protect those living in leasehold properties, and this is an area I will be encouraging the government to look at”.
In agreement, Mr Jenkin, MP for Harwich and North Essex, said: “The idea of introducing some regulation of residential leasehold management companies is not at all unreasonable, and would provide assurance for leaseholders of flats, and some redress if leaseholders are being ripped off with poor management or excessive charges.
“At the moment, anybody can set up as a leasehold management company, and there are some terrible cases as a consequence.”
A 2014 survey suggested that there could be anywhere up to 5.37 million leasehold properties in the UK.