Tenants will be given improved rights to manage their own flats and protection against unreasonable charges from landlords as new laws come into force this month.

The Commonhold and Leasehold Reform Act 2002, which ensures better protection of tenants' rights, will become law in stages over the coming year.

The new law will give residential leaseholders in England and Wales the right to make their own decisions about the insurance they take out for their building and for maintenance, rather than relying on landlords' choices.

Under the act, a new form of tenancy called commonhold will become an alternative type of property ownership. Under this system, tenants of blocks of flats will all have a share in the freehold rather than being answerable to a landlord.

Michael Tims, who works for the Leasehold Advisory Group, a national organisation working on behalf of leaseholders, said: "This legislation is a major move. Before, you had to acquire the freehold in order to get control but what you can do now is elect to manage your own building running your service charge, insuring the building, paying maintenance.

"It is meant to stop an abuse of the system, such as overcharging, so you get to argue that your property is being run inappropriately if that is the case."

He said the new legislation would allow tenants who do not live in their property for example, overseas owners who buy properties in the UK to exercise these rights. Under previous legislation, they had to have owned the property for two years.

July 3, 2002 16:00