’For far too long too many have been denied the full benefits of ownership through the unfair and outdated leasehold system,’ says housing secretary
Housing secretary Michael Gove introduced a new bill to parliament yesterday (27 November 2023) to give leaseholders more control over their property and ban ”exorbitant” buildings insurance commissions.
Called the Leasehold and Freehold Reform Bill, the new document sets out laws that will provide homeowners with “greater rights” and “take over the management of their property if they wish to”.
As part of this, buildings insurance commissions for managing agents, landlords and freeholders will be replaced with transparent administration fees.
“This will stop leaseholders being charged exorbitant, opaque commissions on top of their premiums,” the government explained.
And, in turn, it felt that such a move would contribute to leaseholders getting a fairer deal.
“People work hard to own a home. But for far too long too many have been denied the full benefits of ownership through the unfair and outdated leasehold system,” Gove said.
“That’s why liberating leaseholders forms a vital part of the government’s long-term plan for housing.
“So, today marks a landmark moment for millions of leaseholders across the country, as we unveil laws to deliver significant new rights and protections, slash unfair costs and crack down on exploitation.”
This came after the FCA revealed in April 2023 that broker remuneration for insurance of multiple-occupancy residential buildings rose over a three year period.
Last month (29 September 2023), the regulator announced it would force insurance firms to act in leaseholders’ best interests from 1 January 2024.
As part of this, firms will be banned from recommending an insurance policy based on commission or remuneration levels.
Following this, Biba launched a new fair value assessment framework to help members implement or refine their own fair value models for customers and operating models.
“Biba members are committed to providing fair value to the customers they serve, as well as the new policy stakeholders created in relation to multi-occupancy properties, reinforcing the core principle that the broker is the agent of the customer and acts in their best interest,” Biba chief executive Graeme Trudgill said.
“The new fair value assessment framework will help our members to demonstrate the value they provide to customers and it can be applied by member firms of all different sizes.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
Now working within the insurance sector, James has a particular focus on motor, M&A activity and financial reporting.View full Profile