Property Service Charges

Debate between Anna Dixon and Joe Powell

Thursday 30th October 2025 Commons Chamber

[Joe Powell (Kensington and Bayswater) (Lab)]

I join others in congratulating the hon. Member for Reigate (Rebecca Paul) on securing this debate. I know that leaseholders across the country will be watching this debate very closely, because the cost of being a leaseholder has contributed to the cost of living challenges that so many of our constituents have faced for such a long time.

My leaseholder action group in Kensington and Bayswater, which the Minister kindly met with recently, regularly shares stories of escalating, unaccountable and untransparent service charges levied by managing agents that they have no control over. At worst, the current system can represent a cartel, with a broken market in which competition between managing agents is undermined by monopoly-type relationships with some freeholders and a broken connection between those who pay the bills and those who deliver the services.

The impact can be devastating. One of my constituents, Adriana, has taken her housing provider to tribunal three separate times simply to get clarity on how her service charge was calculated. Each time she has won, but the housing provider is still not providing the information; indeed, it is now offering to withdraw all the charges, rather than provide that information. That is not transparency: it relies on the assumption that the other residents, many of whom are elderly or financially strained, will not have the resources to challenge. Rather than giving up, Adriana now supports other residents in helping them to understand their rights and how to contest these unfair practices. Her determination is admirable, but it should not fall to residents themselves to protect one another from a system that is supposed to protect them.

Another group of residents who speak to me regularly about these issues, who live in a building called Shaftesbury Place, have been hit with crippling increases to their charges after a 2,489% increase in their building insurance premium. That annual cost, which is up from £15,000 to £375,000 a year, has been passed directly to the leaseholders through their service charges. The housing provider says that the freeholder procured the insurance—the residents have seen evidence suggesting otherwise—but the confusion over who procured the insurance and how the premium was calculated has left leaseholders caught in the middle. The justification appears to rest on a fire risk assessment that many residents believe is flawed, but the result is that ordinary homeowners, including shared ownership homeowners trying to climb the ladder, have been left with unaffordable bills and no clear line of accountability for how those costs have been allowed to spiral.

[Anna Dixon (Shipley) (Lab)]

I commend my hon. Friend for explaining the problems so clearly, problems that are shared by my elderly residents in Aire Valley Court and Sutton Court in Bingley. They too have seen above-inflation rises in service charges and a lack of transparency about accounts, with no evidence to justify them. Does my hon. Friend agree that it is now time that we bring in licensing and stronger regulation of managing agents such as FirstPort?