Freehold: Service Charges
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to protect (a) freehold property owners and (b) freehold property owners in new build housing estates from high maintenance fees.
Answered by Matthew Pennycook
The government remain committed to protecting residential freeholders on private and mixed-tenure housing estates from unfair charge
We will consult this year on implementing the Leasehold and Freehold Reform Act’s new consumer protection provisions for the up to 1.75m homes that are subject to these charges, and bring these measures into force as quickly as possible thereafter. These include ensuring that homeowners who pay an estate management charge have better access to information they need to understand what they are paying for, the right to challenge the reasonableness at the First-tier Tribunal (in England), and to go to the tribunal to appoint a substitute manager.
The government is also determined to end the injustice of ‘fleecehold’ entirely and we will consult next year on legislative and policy options to reduce the prevalence of private estate management arrangements, which are the root cause of the problems experienced by many residential freeholders.
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