Major South Tyneside Council housing policy shake-up to affect hundreds of residents
Hundreds of leaseholders in South Tyneside are set to benefit from a new management policy signed off by senior councillors this month.
South Tyneside Council's Labour cabinet has approved a new "leasehold management policy" for the borough in a major shake-up of the way leasehold properties are managed.
The council states the policy has been developed in response to recent national reforms and follows a comprehensive review of leasehold service charges, with an aim of providing greater transparency and improved support to leaseholders, along with a clear framework setting out their rights and responsibilities.
The policy also introduces a host of positive changes for leaseholders, according to the council, such as clearer information and transparency around service charges, repairs and major works and "stronger legal protections and rights, including easier lease extensions and the right to manage or collectively acquire freehold ownership".
Other changes include "structured support for financial hardship, with targeted arrears plans and signposting to anti-poverty initiatives" and "improved engagement and communication, with regular opportunities for leaseholders to influence council decisions and service delivery".
Another key change includes a council "commitment to equality, diversity, and inclusion, ensuring all leaseholders are treated fairly and individual circumstances are considered."
Councillor Jane Carter, cabinet member for housing and community safety and deputy council leader, said the development of the policy followed a recommendation from an independent review and was "not a policy that we have had in place previously".
It was noted that councils, as freehold landlords, are responsible for managing leasehold properties and ensuring compliance with a number of legal obligations, ranging from setting service charges transparently and "consultation requirements" before undertaking major works, to "lease extensions and freehold purchase rights".
While there is no "statutory duty" for South Tyneside Council to have such a policy around leaseholders, senior councillors were told that it was regarded as "best practice".
"Leaseholder properties make up five per cent of the council's housing stock including properties sold to eligible tenants through the right to buy scheme, this is likely to result in additional leaseholders as there has been an increase in the number of applications in the last year since the reforms were introduced last year," Cllr Carter added.
"The policy outlines the key responsibilities and obligations on the council and the leaseholder in accordance with the applicable lease agreement and relevant legislation.
"It will ensure that our responsibilities as the freeholder, as contained in the lease, are met [and] outlines a core framework which will guide the provision of efficient leaseholder-focused management services that offers best value for money."
The new policy was developed following public consultation, including drop-in sessions at Hebburn Central, Jarrow Focus and South Shields Town Hall, as well as an online survey.
Leaseholders were invited to share their views on key topics such as service charges, major works, repairs and understanding their leasehold obligations and feedback shaped the new policy and led to the development of a leasehold engagement plan, with the aim of ensuring leaseholders’ voices continue to inform service improvements.
The new management policy also aligns with South Tyneside Council’s wider ambitions for housing, community safety, and resident engagement and will be reviewed and updated in line with national legislation and feedback from leaseholders.
Councillor Jim Foreman, cabinet member for governance, finance and corporate services, said the policy was a "long time coming" and would benefit hundreds of leaseholders.
"It's great to see this has come forward because at the end of the day our council strategy and our 20-year vision is really needed and this is an important part of that strategy and vision," Cllr Foreman added.
"Also the integrated housing strategy of 2019 details how the council will deliver high-quality housing across all tenures and locations and leaseholders are an important part of that tenure and location element.
"We have I believe more than 800 leaseholders in South Tyneside at this moment in time and I'm sure this would be a great help to those tenants who have leaseholds."