Oral Answers to Questions

Sarah Olney Excerpts

Monday 27th March 2023 Commons Chamber

[Rachel Maclean]

I thank my hon. Friend very much for drawing the House’s attention to the issue of damp and mould. My right hon. Friend the Secretary of State has been extremely active in pushing forward improvements to social rented housing. It is right that we should level that up to private rented housing. We will be bringing forward the decent home standards in the private rented sector in the renters reform Bill.

[Sarah Olney (Richmond Park) (LD)]

11. Whether he plans to take steps to help tackle significant increases in service charges for leaseholders and social housing tenants.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)]

Service charges must be reasonable and works and services must be of a reasonable standard. We will empower leaseholders by legislating, so that service charges are more transparent. We are encouraging registered providers of social housing to limit service charge increases for social housing tenants to 7% or less.

[Sarah Olney]

I have been told by constituents who live in housing association properties that not only their rents but their service charges will be going up this year. One constituent has told me that their service charge will increase from £15.18 per week to £127.74—over £5,800 per year more for their service charge. These constituents are already struggling at the top of their budgets to accommodate increased heating and living costs. The Government have placed a cap on the maximum that their rent can be raised by, but that is surely arbitrary if the service charge can be increased by such a drastic amount.

[Felicity Buchan]

As I have said, service charges are payable only to the extent that the costs have been reasonably incurred. If the hon. Lady’s social housing tenant believes that the costs have not been reasonably incurred, I really encourage them to go to the housing ombudsman. Similarly, leaseholders can also challenge any service charges through the first-tier tribunal.