Leaseholders still aren’t being consulted on major works on their properties and are facing significant costs, research suggests.
New research by the government-funded Leasehold Advisory Service (LEASE) shows that Section 20 consultations, a legal requirement for landlords to consult leaseholders before starting major works, are being routinely ignored.
Analysis of almost 28,000 requests to LEASE for direct advice over the past year shows that Section 20 consultations account for one in ten enquiries, making it one of the most frequent issues leaseholders seek advice on.
Despite leaseholders footing the bill for major works, almost a third (31%) of enquiries at LEASE 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.
The misuse of the provision to dispense consultations, with major works being undertaken without the Section 20 process being followed, is a major concern according to the report.
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.
“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.”
