On 28 June, the Law Commission published a progress report for its event fees project.

The Commission concludes that event fees can benefit consumers but they must be disclosed to prospective buyers early, clearly and prominently. It goes on to make the following recommendations:

  1. Estate agents should be given guidance on their existing legal obligation to disclose event fees in any communication to prospective buyers that mentions the price of the property.
  2. The industry should work with the Law Commission to create a single set of Code of Practice provisions relating to event fees. These should be approved by the DCLG.
  3. Event fees in relation to which there has been a breach of the code provisions should be presumptively unfair and unenforceable.
  4. Event fees that are solely for the maintenance, repair, or improvement of the estate should be subject to a statutory trust.

These are prospective in their proposed effect, for existing leaseholders the Commission is considering other avenues of redress for existing leaseholders, including an option to bring their claim in the First-tier Tribunal rather than in the County Court.

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