In recent years, greedy freeholders have used their in-house insurance broker firms to charge enormous hidden commissions (sometimes exceeding 60%) on insurance premiums while providing no additional value to leaseholders. Despite the fact that all insurance costs are passed down to them through the service charge, leaseholders have little to no say in the buildings insurance selection process for their property and as a result experience significant difficulty when challenging excessive premiums.

A first-tier tribunal is not a sensible nor practical way of disputing unreasonable insurance costs given how rampant the problem is, so it is time the government took action to stop insurance firms engaging in unfair business practices and taking advantage of leaseholders.