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

To ask the Secretary of State for Housing, Communities and Local Government, what steps he is taking to regulate service charges for leaseholders to ensure that they are transparent and value for money; and what support is available for leaseholders who see service charges increase because ground rent is capped.

On 4 July 2025, the government published a consultation, jointly with the Welsh Government, on strengthening leaseholder protections over charges and services. The consultation included proposals to reform the section 20 ‘major works’ procedure, increase transparency over service charges and enhance access to redress through the relevant provisions in the Act. The consultation can be found on gov.uk here. It closed on 26 September 2025, and we are analysing responses with a view to bringing the relevant measures into force as quickly as possible.

Ground rent is a payment set out in a lease with no clear service provided in return. It is legally distinct from service charges.

Service charges are financial contributions made by leaseholders towards the costs of the management and maintenance of their buildings.

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 many factors, including the terms of a lease 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.