Overview

The Leaseholders’ Rights Bill aims to enhance the rights of leaseholders in England and Wales regarding the management and maintenance of their properties. It increases leaseholder involvement in decisions about major works and introduces safeguards against excessive service charges.

Description

Increased Leaseholder Involvement in Decisions on Works

The bill amends the Landlord and Tenant Act 1985 to give leaseholders more say in decisions about building works. Landlords must now provide detailed cost estimates, consult on specifications and tenders, and consider leaseholder counter-proposals. A ballot of affected tenants can be held on counter-proposals supported by at least 25% of tenants, with the counter-proposal being adopted if it receives majority support. Landlords are also required to publicly share details of proposed works, consultations, and related decisions.

Service Charge Limits and Payment Plans

The bill adds a new clause limiting annual service charges to £12,000 per leaseholder (indexed for inflation). If a leaseholder's contribution exceeds this amount, the landlord must offer reasonable installment payment plans.

Increased Transparency

The bill mandates that landlords make information regarding proposed works, consultation responses, counter-proposals, and tribunal decisions publicly available for 10 years.

Government Spending

The bill doesn't directly specify government spending. However, the increased administrative burden on landlords and potential costs associated with disputes could indirectly affect government resources if existing dispute resolution services need expansion. The exact financial impact is not specified in the bill.

Groups Affected

This bill primarily affects:

• Leaseholders: They gain increased rights to participate in decisions about building works and protection against excessive service charges.
• Landlords: They face increased administrative burdens, including consultation requirements and potentially higher costs.
• Residential Property Tribunals: They may see an increase in cases related to disputes under the amended Landlord and Tenant Act.

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