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Posted by Administrator on 21.06.16 in News

Survey Reveals Leaseholders Want Better Communication

Survey Reveals Leaseholders Want Better Communication

A worrying 57% of leaseholders admit they regret buying a leasehold property.

According to the National Leasehold Survey, the UK’s first ever independent national survey of 1200 UK­leaseholders, which set out to identify the levels of satisfaction amongst leaseholders and RMC directors.

The survey was conducted­by LEASE, the Leasehold Advisory Service, which is the government-funded service for leaseholders and their advisers, and property law firm Brady Solicitors.

Leaseholders Want Better Communication

The survey has made several alarming discoveries – the clear majority (68%) of leaseholders have little or no confidence in the ability of their managing agent to deal with a problem or dispute, with just 6% being ‘very confident’ their agents would act effectively and efficiently to resolve it.­Small wonder then, that taking control through the Right to Manage is becoming more popular with leaseholders.

Leaseholders Resist Becoming a Resident Management Company Director

The survey also identified one of the biggest challenges facing the sector is finding leaseholders willing to take-on the role of RMC director, whilst sentiment amongst RMC directors themselves reveals a clear polarisation in viewpoints – split between those who find the role strongly rewarding versus those who find it challenging.

Over 60% of RMC directors say the role is time consuming, taking up significantly more time than expected, and that a strong and wide skill set beyond legal and company expertise is necessary to effectively carry out their duties.

They feel a greater amount of knowledge is needed to be an effective RMC, and specific training that looks at the role in the round and which equips them not only with the company law expertise, but guidance and support with communication to tackle the day to day challenges of communal living, is urgently required.

Choose Directors & Officers Liability Insurance

They clearly see the risks of getting it wrong, and that is why Flats Direct advises that these volunteers are always protected by Directors & Officers Liability Insurance specifically written for companies set up to manage apartments.

Amongst the main findings:

  • 57% of leaseholders admit they regret buying a leasehold property.
  • Two-thirds of leaseholders don’t feel they get a good service from their managing agent.
  • Just 6% are very confident the managing agent could resolve issues.
  • 68% of leaseholders have little or no confidence that their managing agent could resolve issues efficiently and effectively.
  • 51% of leaseholders see a change in managing agent would improve matters and benefit the block.
  • 1 in 5 leaseholders are unaware they could replace a poorly performing managing agent.
  • 55% of leaseholders consider changing managing agents would be a difficult process.
  • 48% of leaseholders believe a lack of knowledge is a real barrier to changing managing agents.
  • 40% of leaseholders strongly disagree that service charge is value for money.
  • 62% of leaseholders say the service hasn’t improved in the last two years.
  • RMC directors are generally happier with their leasehold properties than ‘ordinary’ leaseholders due to a greater sense of control over the property’s management.
  • Two-thirds of RMC directors feel they have a good relationship with fellow directors and leaseholders, but identify a need for a strong, wide skill set beyond legal and company expertise.
  • 55% of leaseholders know where to go for information, but 32% do not.
  • 52% of leaseholders are confident they know their rights and responsibilities.

See more about the survey findings HERE.

For more information on obtaining the Right to Manage your property or Directors and Officers liability insurance, please get in touch with Flats Direct on 01202 862 660or 0800 731 6242 (Freephone).

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