First-tier Tribunals and Freeholders — House of Commons, 2018-07-24
Topic: Housing
Lucy Claire Leigh (Frazer) (Conservative, Centre-right): I congratulate the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) on securing today’s debate on a subject that is clearly very important to his constituents, as it is to other Members in the House. I thank the other hon. Members present for their valuable contributions, particularly the hon. Member for Strangford (Jim Shannon). I was very interested to hear in the last debate that it was his 44th speech in this Session. I am pleased that he has remained for the final debate before the recess It might be useful for me to explain a little bit more about the first-tier tribunal and the matters it deals with. The chamber was created in 2013 following the transfer of the functions of three tribunals—the agricultural land tribunal, the adjudicator for the Land Registry, and the residential property tribunal—into the first-tier tribunal. The residential property jurisdiction deals with a number of matters relating to landlord and tenant law, including leasehold enfranchisement and lease extensions, liability to pay service charges, variations of leases, and the acquisition of the right to manage. It is an expert jurisdiction. The tribunal panels include valuers and, as the hon. Member for Poplar and Limehouse said, lay people with experience of landlord and tenant matters I turn to the specific question of the powers of the first-tier tribunal to appoint a manager under section 24 of the Landlord and Tenant Act 1987, and how they are enforced. Section 24 allows the first-tier tribunal to appoint a manager to carry out obligations contained within a management order that is issued by the first-tier tribunal. Although the tribunal makes the appointment, it is often the case that leaseholders apply for a manager to be appointed because the landlord has in some way breached the management obligations that it owes to them. In most cases, before the leaseholders make such an application, they must serve a notice on the landlord specifying in broad terms the landlord’s alleged breaches and what the landlord must do to remedy them. If the landlord does not take remedial action within a reasonable period, the leaseholders may then apply to the first-tier tribunal for the appointment of a manager Usually, the party applying nominates the individual manager they wish to have appointed, who is then required to prepare a management plan setting out his or her experience and explaining how he or she will manage the property. The first-tier tribunal has wide powers to decide on the matters to be included in a management order under section 24, which will typically deal with initial transfer of information, documentation, money and other items necessary for the manager to be able to perform his duties properly. It will also cover which management matters were transferred to the manager, such as maintenance, repairs, and collection of service and other charges from the leaseholders It might be helpful to explain the manager’s status in this type of arrangement. The manager is not a managing agent, nor is he employed or directed by the landlord or the leaseholders, including those who apply for his appointment. The Court of Appeal has stated that the appointed manager carries out the functions required by the tribunal, and he or she carries out those functions in his or her own right as a tribunal-appointed official. He is not appointed as the manager of the landlord or to carry out the landlord’s wider obligations under the lease, unless specified in the management order. In an appeal to the upper tribunal, His Honour Judge Huskinson said that if there is criticism of the conduct of the appointed manager and complaints are brought before the tribunal, those criticisms must and will be examined with care, because they are made against the manager as a tribunal-appointed officer To be clear, the manager is appointed by the first-tier tribunal to carry out the duties required by the order appointing him. He is answerable to the tribunal, not to the leaseholders or to the landlord.