A complex leasehold redress system is deterring leaseholders from making complaints, according to new research by the Leasehold Advisory Service (LEASE).

The government-funded advisory body says too many leaseholders aren’t escalating complaints because the process seems too time-consuming and stressful. Despite a wide range of redress schemes, ombudsmen, regulators and advice bodies, the current system is not always joined up to support consumers and, in some cases, can be ineffective.

Its poll of 247 leaseholders found that their top considerations when escalating a property issue were the likelihood of action, the impact on service charges, the guidance available, and cost.

Routes

Chair Martin Boyd (main picture) says while there are multiple routes to redress, in practice, the system is difficult to navigate. “This leaves many leaseholders feeling confused and unsupported at the point they most need clarity,” adds Boyd. “Too often, leaseholders disengage because they can’t identify the right avenue quickly or the process feels uncertain and time-consuming.”

‍Sean Hooker, head of redress at Property Redress Scheme (pictured left), believes that while there are no quick fixes, this is a vital piece of work in identifying the gaps and tackling the longstanding and deep-seated weaknesses in the route to redress for leaseholders.

He adds: “What is needed is a redress landscape that is fair to all. This includes not only long-suffering leaseholders, but also property managers who are trying to deliver a quality service in an increasingly challenging, complex and costly environment, as well as freeholders and landlords who, whilst often seen as holding the power in the relationship, need clear direction in order to invest in and improve the property stock they own."

Better

LEASE believes leaseholders need better information and support to escalate complaints against their managing agents while forms of alternative dispute resolution could be utilised more.

The group is now working with the sector to develop practical and effective tools to make it easier for leaseholders to access information and understand redress routes. This will include guidance on alternative dispute resolution and how to navigate courts and tribunals. It will also push for wider, more structural reform to ensure there is suitable redress in place for all leaseholders and that the relevant bodies can enforce decisions.

Last month, the government’s draft Commonhold and Leasehold Reform Bill was published, outlining a major overhaul of leasehold rules in England and Wales that will cap existing ground rents and change how leasehold properties are managed.

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