What you need

These resources guide you through the steps to plan, agree and run your Local Management Agreement.

Landlord consultation

This is a crucial stage in setting up a Local Management Agreement, and only the Council can do it – because it’s a legal requirement under Section 27A of the Housing Act 1985. This says that the Council must consult residents on any changes to the housing management service, which will materially affect them.

What the Council must say
See the model ‘Consultation letter’, which shows how the Council might consult residents about a proposed Local Management Agreement. The key points are to:
• Make it clear what is proposed
• Explain how this will affect residents
• Attach any necessary supporting information
• Set a reasonable deadline for replies
• Offer a variety of ways for people to respond.

The Council must take any language or other needs into account when consulting residents (for example, offering translation into local community languages, or using large type for partially sighted people).

Although it may not be legally obliged to consult other people affected by the change (for example, local shopkeepers and other community groups), the Council should ask them for their views in a similar way.

Acting on consultation
The law says that the Council must consult residents and take their views into account when making decisions and changes – but it doesn’t have to do what residents (even a majority of people responding) say. The Council must though act reasonably, and be able to show good reasons for its decisions and actions.

Leaseholders and freeholders
Special rules apply to residents who are leaseholders of their homes (for example, people who’ve bought leases of flats under the Right to Buy).

The Commonhold and Leasehold Reform Act 2002 says that the Council must consult leaseholders if it plans to:

• Enter into an agreement for a term of more than 12 months, which will mean leaseholders would have to pay more than £25 per year each for works or services.

Although not all Local Management Agreements will fall within these limits, it is good practice for the Council to follow the consultation procedures set out in the Act, which involve:


Stage 1
• Give leaseholders formal written notice of the intended agreement (with as much detail about the planned works, contractors etc as possible)
· Ask for leaseholders' comments
· Invite leaseholders to suggest any person or firm who they think might be suitable to provide the service.

Stage 2
• Get at least two estimates for the service
• Send leaseholders details of the estimates and how the cost breaks down for each property and by period (for example £ per day/week/month)
• Leaseholders then have 30 days to make any comments about the proposed contract.

Stage 3
• The Council (or residents’ group) awards the contract to whoever will provide the service
• The Council must write to leaseholders confirming who was awarded the contract and why.

There is no legal obligation to consult freeholders (for example, people who’ve bought houses under the Right to Buy), but the Council should follow a similar process to be fair and to comply with good practice.

Publicising the outcome
The Council should arrange to tell everyone it has consulted about the results of the consultation, and what it intends to do. It is good practice to summarise the key comments and objections received.

Non-housing services
Section 27A of the Housing Act 1985 does not apply if the proposed Local Management Agreement is not a housing service (for example, a leisure facility). But it still makes sense and is good practice to consult widely with residents and other people affected by the change.