Property Service Charges

Nusrat Ghani Excerpts

Thursday 30th October 2025 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. All Back Benchers are now on a six-minute speaking limit. I call Justin Madders.

--- Later in debate ---

[Fleur Anderson (Putney) (Lab)]

I welcome this important debate and thank the hon. Member for Reigate (Rebecca Paul) very much on behalf of the many constituents who come to my surgeries, who write to me, and who I meet when I am out and about in the many developments across Putney, Southfields, Roehampton and Wandsworth town.

I speak today on behalf not just of my constituents, but of leaseholders across the country who feel that they are being let down by the broken system—one that continues to allow unfair and sharply rising service charges, poor communication, and substandard services to persist unchecked. The limited rights to challenge such changes leave people feeling as if they are fighting the battle on their own. As we know from the number of Members present and from many other meetings, people across the country face these issues, so there is something wrong not just with the individual managing agencies that we are all thinking of, but with the system itself.

The hon. Member for Weald of Kent (Katie Lam) mentioned regulation. Do we need more layers of it? We must also consider the checks and balances in the system. Asking people to go to the first-tier tribunal as a last resort is so daunting and cumbersome that it is not a proper check on the system. I welcome the Government’s decisive action to tackle long-standing injustices in leasehold and estate management. I thank the Minister for all his work on that, including the incoming changes. This debate is full of hope about those changes making a difference.

Ahead of the closure of the Government’s recent consultation on strengthening leaseholder protections, I conducted a service charge consultation in my constituency, where it is a big issue in so many developments. The results, which I have submitted to the Government, were deeply troubling. More than 200 constituents responded to my consultation, and I think they speak for hundreds more. Almost 90% of respondents reported significant increases in their service charges. Even more—96%—said that they felt those increases were unjustified. That comes down not only to poor communication, but to the fact that many of those services charges do seem to be unjustified.

Those are not isolated cases, as we are hearing in the debate. In 2024, service charges rose by 11% on average—well above the 2.5% rate of inflation—and, in my constituency, they average £2,300 per year. I see countless examples of eye-watering hikes. One constituent reported that their annual service charge had increased from £1,600 to £6,660 per year, for example, while another told me they were sent a large additional bill right before Christmas as their managing agent clawed back more money after an “error” in its accounting. That often happens during years in which the amount has already risen a lot, before rising more still because of extra charges and services provided—or not provided, as many constituents see it.

Too many leaseholders are ignored by managing agents and charged for services that are sub-standard or not delivered at all, including cleaning services that show no signs of leaving the building cleaner, painting in communal areas that do not need to be painted or for which the charge should be lower, and, in one case, gardening services for gardens that do not exist. One of the most shocking examples in my consultation was a large development in my constituency. Leaseholders reported a revolving door of housing managers who are inexperienced, unqualified, overstretched and unfamiliar with the building’s history. The managing agent presents accounts that simply do not add up. Contractors are paid without checks, faults go un-penalised and residents are left to clean up the mess time and again. The managing agent has ignored numerous industry experts who have stated that important plumbing works need to be carried out. Some have said that the building is in serious danger of complete structural failure. Basic services are not carried out, yet leaseholders continue to foot the bill. The managing agent is supposed to paint the exterior at least every 10 years, but nothing happens. It is the same old story again and again.

Six managing agents were named many times in my consultation. I will not name them here, because that would be damaging for the people who live in those developments. Clearly, there are some good managing agents and landlords, but there are also some very bad ones, and those are the ones that we need a new Bill to deal with. The Leasehold and Freehold Reform Act 2024 contains proposals for greater transparency through standardised accounts, mandatory reserve funds and easier routes to challenge unreasonable service charge rises, and managing agents will face mandatory qualifications and enforced membership of professional bodies. Those measures are all welcome. The previous Conservative Government had 14 years to act on these matters but passed leasehold reform law only in the dying days of the last Parliament, so their measures were rushed, poorly drafted and failed to ban new leasehold homes.

I am very glad that this debate offers us the chance to talk about going further on industry regulation and to welcome the commonhold Bill. Leaseholders in my constituency and across the country have waited long enough. The system is broken, the injustice is real, and the need for reform is urgent.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call David Reed. Many congratulations on baby Reuben!

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[David Reed]

I have one minute left and I will make my final points. The Act aimed to bring mandatory transparency, through standardised billing, greater rights to challenge charges, and easier routes to taking over management, but those reforms are not yet implemented. Why is that? I hope that the Minister, in his closing remarks, will set out a course for when those measures will be implemented, and will say what new legislation will be brought in to ensure that people are protected. I finish on a point on which I think we all agree: residents who are on these schemes do not need more consultations; they need action, and this Parliament must deliver.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. It is up to Members if they wish to take an intervention. If they do, they have an extra minute on their speaking time.