Asked by: Lord McColl of Dulwich (Conservative - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what plans they have to reinforce a fair market by ensuring that fees, and particularly increases in fees, charged by property management companies are transparent and justified to their customers.
Answered by Baroness Scott of Bybrook - Shadow Minister (Housing, Communities and Local Government)
By law, variable 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 appropriate tribunal to challenge the reasonableness of their service charges.
We are committed to protecting and empowering leaseholders by giving them more information on what their costs pay for. We will legislate to ensure service charges are transparent and communicated effectively, removing barriers to challenge when things go wrong. This will help leaseholders more effectively challenge their landlord if they consider their fees are unreasonable. We are due to bring forward further leasehold reforms later in this parliament.