Leasehold: Property Management Companies

(asked on 23rd February 2022) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of trends in the level of management costs paid by leaseholders.


Answered by
Eddie Hughes Portrait
Eddie Hughes
This question was answered on 3rd March 2022

Leaseholders are typically liable to contribute to the overall management costs of a building to allow for the proper and safe management of ongoing maintenance, repairs and services. Management costs will also be incurred if a freeholder employs a managing agent to undertake those responsibilities on their behalf. The Government believes very strongly that these charges should be transparent and communicated effectively. The law is clear that service charges and any increase in costs must be reasonable and, where costs relate to work or services, the work or services must be of a reasonable standard. The Government believes that there should be a clear route to challenge or redress if things go wrong.

Leaseholders may make an application to the appropriate tribunal (being the First-tier Tribunal in England and the Leasehold Valuation Tribunal in Wales) for it to make a determination on the reasonableness of their service charges.

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