Leasehold: Service Charges
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department is taking to ensure that leaseholders’ reserve funds are (a) legally protected, (b) transparently accounted for and (c) subject to independent oversight.
Answered by Matthew Pennycook
Landlords and managing agents are responsible for handling billions of pounds of service charge monies each year, including reserve fund monies. Service charge monies are legally protected since they must be held in trust and at a financial institution authorised under the Financial Services and Markets Act 2000.
On 4 July, the government published a consultation on strengthening leaseholder protections over charges and services. It can be found on gov.uk here. For an overview of the proposals set out in the consultation, I refer the hon. Member to the associated Written Ministerial Statement (HCWS780). The consultation closed on 26 September, and we are analysing responses.
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