Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of the potential implications for its policies of Social Housing Action Campaign's research entitled Tribunals Research Finds Overcharging in 70% of Cases as HA Service Charge Income Soars, published in February 2025; what assessment she has made of trends in the level of service charges being found unreasonable in law; and what steps her Department is taking to prevent unreasonable service charge decisions.

The government recognises the considerable financial strain that rising services charges place on leaseholders and tenants. The level of service charge that leaseholders pay depends on a range of factors, including the terms of a lease or tenancy agreement and the age and condition of a building.

By law, variable service charges must be reasonable. Overcharging through service charges is completely unacceptable. Should leaseholders wish to contest the reasonableness of their service charges they may make an application to the appropriate tribunal.

My Department does not hold data on the number of unreasonable service charge challenges that are upheld by the First-tier Tribunal (Property Chamber).

The Leasehold and Freeport Reform Act 2024 includes measures designed to drive up the transparency of service charges to make them more easily challengeable if leaseholders consider them to be unreasonable. Once commenced, these will ensure all leaseholders receive minimum key financial and non-financial information on a regular basis, including introducing a standardised service charge demand form and an annual report.

The government is committed to acting quickly to implement the provisions of the Act. Further detail can be found in the Written Ministerial Statement made on Thursday 21 November 2024 (HCWS244).