The specific proposal to introduce Commonhold as a default tenure replacing leasehold could present a business opportunity for agents, it appears.
Housing Minister Matthew Pennycook has told the House of Commons about the increased scope for managing agents, and therefore the need for them to be increasingly regulated in the new Commonhold tenure: “Managing agents play a key role in the maintenance of multi-occupancy buildings and freehold estates, and their importance will only increase as we transition toward a commonhold future, and so we are looking again at Lord Best’s 2019 report on regulating the property agent sector, particularly in light of the recommendations in the final Grenfell Inquiry report.
“As part of our response to that report I can confirm that we will strengthen regulation of managing agents to drive up the standard of their service. As a minimum, this should include mandatory professional qualifications which set a new basic standard that managing agents will be required to meet. We will consult on this matter next year.
Under the proposed model, agents can be employed by Commonhold associations (the structures to be set up by a collective of apartment owners) to assist in the management of a building.
Propertymark says that it is anticipated that almost all new Commonhold developments, especially larger or more complex buildings, will be established with a managing agent to help run the site on their behalf.
Ministers are giving further consideration to whether there are some situations or building types, such as high-risk buildings, where it should be mandatory for a managing agent with appropriate expertise to be employed.
via [Letting Agent Today]