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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Written Statement of 31 October 2019, Leasehold update, HCWS55, what steps his Department is taking to give freehold homeowners the same rights as leaseholders to challenge the reasonableness of estate maintenance fees on new build properties.

The Government is committed to promoting fairness and transparency for homeowners and ensuring that consumers are protected from abuse and poor service. We are moving forward with legislation to ensure freehold homeowners can access equivalent rights to leaseholders to challenge the reasonableness of estate rent charges and go to the Tribunal to change their managing agent if necessary.

Last year, the Government asked the Regulation of Property Agents working group, chaired by Lord Best, to also look at how service charges for leaseholders - and estate rent charges for resident freehold homeowners - could be made more transparent. The group also considered in what circumstances other fees and charges, such as administration charges or permission fees (which affect both leaseholders and freeholders) are justified or whether they should be capped or banned. The working group’s final report was published on 18 July and we are considering the recommendations set out in the report. We will respond in due course.