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

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential merits of introducing a cap on increases in service charges for leaseholders.

The Government believes very strongly that service charges should be transparent and communicated effectively, and that there should be a clear route to challenge or redress if things go wrong. The law is clear that service charges must be reasonable and, where costs relate to work or services, the work or services must be of a reasonable standard. Leaseholders may make an application to the First-tier Tribunal to make a determination on the reasonableness of their service charges or fees. A summary of leaseholders’ rights and responsibilities must also be provided with the demand for charges.

The Government established an independent working group, chaired by Lord Best, to consider fees and charges alongside the regulation of property agents. The working group published its final report to Government (available at: https://www.gov.uk/government/publications/regulation-of-property-agents-working-group-report) and we are considering the report’s recommendations.