To ask the Secretary of State for Communities and Local Government, what assessment he has made of the ability of leaseholders who own their own flats to challenge the level of service charges they pay; and if he will make an assessment of the adequacy of regulation of service charges to ensure that such leaseholders are able to challenge the levels of service charges they pay.
Answered on
5 December 2016
The reasonableness of the service charges that landlords seek from leaseholders will depend on the nature of the works required and other contributing factors, such as the terms of the lease, and its covenants.
The law is clear that service charges are payable only to the extent that the costs have been reasonably incurred. In support of this, leaseholders have the ability to apply to the Property Chamber of the First-tier Tribunal for a judgement where they do not believe the charges are reasonable. Leaseholders must also be consulted when major works are being proposed.
The government is introducing legislation to prevent landlords from claiming excessive legal costs as separate administration charges when leaseholders challenge service charge costs in the Courts. This will help to ensure that service charges levied are fair and reasonable.