Service Charges
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will bring forward legislation to (a) standardise service charge (i) item descriptions and (ii) terminology used and (b) include references to (A) Schedule of Rates codes and (B) regulatory standards where applicable.
Answered by Matthew Pennycook
The Government recognises that Non-Disclosure Agreements are sometimes used for out of court settlements between leaseholders and their managing agent or landlord. It considers that in the vast majority of cases these should be unnecessary and only be used where they are acceptable to both parties. The Government expect landlords and their agents to be transparent with leaseholders on how the service charges are made up.
The level of service charge that leaseholders pay depends on many factors, including the terms of a lease and the age and condition of a building.
By law, variable service charges must be reasonable. Should leaseholders wish to contest the reasonableness of their service charges they may make an application to the appropriate tribunal. The Leasehold and Freehold Reform Act 2024 includes measures designed to drive up the transparency of service charges to make them more easily challengeable if leaseholders consider them to be unreasonable. We will set out details in due course about the extensive programme of secondary legislation need to bring the various provisions of the Act into force.
The Government is committed to ensuring that those living in the rented and leasehold sectors are protected from abuse and poor service at the hands of unscrupulous property agents. The Government will set out its position on the regulation of letting, managing and estate agents in due course.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →