Everything we now do seems to be linked back to transparency. We have seen it with Google and their tax affairs, which have been trawled over and debated in a way that has never been seen before. Of course people want to know that everything is fair and the challenge comes in how you please all the people all the time. Physically impossible of course, but never the less a challenge that most customer service professions and businesses are facing day in and day out.

Putting a leasehold summary on property particulars should help to move estate agency up the table of trusted businesses.

Bizarrely from a recent survey the highest trust rating goes to hairdressers. Sixty-nine per cent of people trust their hairdresser to tell the truth. Even the clergy rank below at 67 per cent! Builders and estate agents rank well down and I will save blushes by not giving the percentage, safe to say that there is a lot to do to rise up the rankings. Not quite as much as politicians and bankers but still a mountain to climb.

At a time when housing has never been higher on the political agenda and there is a desperate need for more housing in the UK surely the industry should be making strides to ensure trust and reliance become cornerstones. With the rise of the online estate agents and “do it yourself” estate agents now would seem a very good time for a campaign to raise trust levels generally and also to build differentiation into service delivery and trust.

The politicians, the least trusted of all professions, are making much capital on how they will solve the housing problems and indeed the London Mayoral election hustings are being dominated by housing; which candidate understands it most and who has the best solution. As wide as the range of solutions is one thing is certain, there are more homes being built and more homes needing to be built. Most of them will be leasehold, whether blocks of flats or housing estates.

Rights and regulations

Whatever type of property that is sold full disclosure in particulars is essential. There is much more to disclose with a leasehold property than a freehold. Most purchasers are not sophisticated and the purchase of their home is a very occasional transaction and a lot happens through the heart and not the head. However for all purchasers it is vital that they understand their rights and obligations of what they are buying. This will always start with the estate agent and the particulars.

The Competitions and Market Authority produced a report last year on leasehold and the operation of the market. One of the key findings was to have information on leasehold to be given to ALL prospective purchasers so the understanding and knowledge base grows. Leasehold Advisory Service produced a simple guide and it can be downloaded at www.lease-advice.org and search for “Things to know before you buy a flat”. It is anticipated that all estate agents will make this available to all prospective purchasers. Of course this is only one side of the coin. For any purchase it is vital that you know what you are buying and all the obligations and commitments. Therefore it has to be sensible to have a summary of the lease terms including service charge and ground rent available on the particulars.

BUILDING TRUST

If you look at a row of houses all will be maintained to different standards because of how people are with priorities and desire to spend. Some will be maintained to the highest level and some have no money spent on them at all. When it comes to leasehold and service charge you do not have that choice with regard to the shared areas and services. The property manager will manage the shared spaces, sometimes based on consultation, the end result will be a bill for each leaseholder. A bill they are obliged to pay under their lease. It is therefore vital they know this upfront since some purchasers may not budget for additional expenditure other than mortgage and council tax.

Putting a leasehold summary on the particulars should help to move estate agency up the table of trusted businesses as well as helping to better inform the public on their homes. At Leasehold Advisory Service (LEASE) we are working hard with all organisations from all sides of the table to improve education and understanding of leasehold. We will continue to do this and are always available for advice.

Roger Southam is the Non Executive Chairman of The Leasehold Advisory Service
www.lease-advice.org