Jayne Bryant MS, Cabinet Secretary for Housing and Local Government
This statement continues my regular series of updates to Members about the implementation of the Leasehold and Freehold Reform Act 2024.
The 2024 Act brings significant new rights and protections for those homeowners on privately managed estates who pay estate management charges. Until now these homeowners could face unclear and sometimes excessive bills for works, with no recourse to gather more information or to challenge charges. Once fully implemented Part 5 of the 2024 Act will:
- Allow homeowners to challenge the reasonableness of charges for the first time;
- Require estate managers to provide information about the services that are being paid for via charges;
- Allow homeowners to apply to a tribunal for a substitute manager to be appointed in cases of management failure;
- Where an estate manager intends to require payment of administration charges, require details of these charges to be published beforehand.
The distribution of powers to make the subordinate legislation necessary to switch on this Part of the Act means that both the Welsh and UK Governments are responsible for consulting on different elements of the regime. A significant proportion of these powers are exercisable by UK Ministers only, but those relating to the need to publish a schedule of administration charges are exercisable by the Welsh Ministers in relation to Wales. We have worked together with UK counterparts to ensure our consultations in this area are available at the same time so that homeowners can access the proposals simultaneously, and encourage homeowners and other stakeholders with an interest in this area to complete both my consultation on publication of administration charges and the UK Government consultation on the wider regime.
The consultation on administration charges is available here: Transparency to freehold homeowners who pay an administration charge on privately managed estates | GOV.WALES. The UK Government consultation on the wider regime is available here: Enhanced protections for homeowners on freehold estates - GOV.UK.