Housing Estates: Service Charges

(asked on 12th January 2022) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what plans he has to allow owners of freehold properties who pay estate rent charges to be able to challenge these costs; and if he will make a statement.


Answered by
Eddie Hughes Portrait
Eddie Hughes
This question was answered on 17th January 2022

The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. Where people pay estate rent charges it is not appropriate that these homeowners have limited rights to challenge these costs.

That is why the Government intends to legislate to ensure that the charges that resident freeholders may pay towards the maintenance of communal area are fairer and more transparent.

To this effect, we will legislate to give freeholders on private and mixed tenure estates equivalent rights to leaseholders to challenge the reasonableness of estate rentcharges, as well as a right to apply to the First-tier Tribunal to appoint a new manager to manage the provision of services.

In addition, we will ensure that where a freeholder pays a rentcharge, the rentcharge owner is not able to take possession or grant a lease on the property where the rentcharge remains unpaid for a short period of time. We will translate these measures into law when parliamentary time allows.

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