Rogue letting agents
A new consultation seeks to improve relationships between block managing agents and their clients by rooting out rogue agents and promoting transparency for all parties.
Regulation of Property Agents
The RoPA Code of Practice Steering Group is seeking views on plans to launch a new Block Management Sector Code. The consultation, which is open until 14 September 2021, is part of the group’s work to improve standards across the property sector.
In September 2020, Propertymark responded to the Overarching Code of Practice for Residential Property Agents consultation which looked at standards designed to promote trust in the industry.
RoPA Overarching Code of Practice
Overarching Code of Practice for Residential Property Agents
Propertymark has responded to the Overarching Code of Practice for Residential Property Agents consultation, welcoming the proposals, and calling for the Code to be strengthened in four key areas to further support the industry.
Property management practices
The proposed code, which takes principles set out in the Overarching Code and applies them to agents involved in managing leasehold and commonhold property, estates and freehold houses, aims to improve the sector by outlining clear standards focusing on:
- increased transparency over service charges and management fees so homeowners understand where and how their money is being spent
- support for how to deal with occupier disputes
- recognising consumers’ use of social media and guidance on how best to work with residents’ associations in new and diverse ways
- updated complaints processes that are in line with regulated firm requirements
- clear instructions on best practice for securing new business – ultimately rooting out rogue agents to make sure leaseholders are getting a fair and comprehensive service.
The new code, however, is not applicable to the management of individual tenancies within a block, commonhold properties managed by the commonhold association itself, or freehold properties managed by the freeholder itself. It also does not include build-to-rent properties.
While primarily focusing on England, the rules could be adopted by all UK Nations.
This consultation is another important step on the road to regulation and improving standards across the whole property sector. The Steering Group has already consulted on an overarching code, so further work in this area demonstrates the industry’s appetite for reform and something that we hope can act as a catalyst for the UK Government to respond to the recommendations in the RoPA report.
The objective of the code is to provide managing agents with a universal set of clear professional standards and, in doing so, give an authoritative point of reference for the level of service leaseholders can expect.
This consultation is important as it provides the opportunity, not just for managing agents to have their say, but for leaseholders and freeholders to share their views to on what they consider a fair and reasonable service should look like.
