Which Welsh tribunal will hear challenges by freehold homeowners on private and mixed tenure estates regarding the charges they pay?
My Written Statement of 4 July sets out my ambition for Welsh homeowners to benefit from the reforms set out in the Leasehold and Freehold Reform Act 2024 as quickly as possible. Implementation will require further consultation and development of detailed subordinate legislation both by Welsh and UK Ministers.
The majority of the provisions of the 2024 Act which relate to protections for freehold homeowners on private estates require subordinate legislation to be made by UK Ministers before they can be implemented. Matthew Pennycook MP, UK Minister of State for Housing and Planning, published a Written Statement in November 2024 which included detail on the sequencing of the implementation of the Act. This is available at: Written statements - Written questions, answers and statements - UK Parliament. Regulation making powers related to the new requirement to publish schedules for administration charges payable in relation to freehold estate management charges lie with the Welsh Ministers. Consultation on these provisions will be published at Consultations | GOV.WALES.
Part 5 of the Leasehold and Freehold Reform Act 2024 will enable freehold homeowners to make an application to ‘the appropriate tribunal’ to challenge the charges they pay. In Wales, that tribunal will be a leasehold valuation tribunal. More information on leasehold valuation tribunals is available at: Leasehold Valuation Tribunals | Residential Property Tribunal.
The new requirement in the Leasehold and Freehold Reform Act 2024 does not apply in Wales because the existing provisions relating to property management companies were also not applied to Wales when they were introduced in 2014. Provisions in Part 6 of the 2024 Act which include a regulation making power whereby the Secretary of State may require estate management companies in England to belong to a redress scheme build on an existing statutory requirement for certain persons engaged in property management work in England to belong to a redress scheme.