The Housing Minister has written to Richard to clarify two key questions he had on Estate Management charges at the completion of the Committee Stage.
Commenting on the letter, Richard Fuller MP said:
The Minister makes clear that Estate Management companies will NOT be able to pass on to residents any fines or damages that the company incurs as a result of poor service. These charges will have to be deducted from the profits of the company. I am only partially satisfied by this response because despite strengthening the powers of residents to challenge unfairly priced services, there is still plenty of leeway whereby an estate management company could “hide” in other charges the amounts needed to recover the costs of fines and damages.
The Minister also clarifies that the same rights of residents to challenge estate management companies will apply even in cases where a specific estate management company is named on the TP1. A TP1 is a form for the Transfer of Part of the Registered Title and is frequently used on new estates to “lock in” the estate management company.
The Minister's letter can be read here.
