Shared Ownership Schemes

(asked on 20th October 2014) - View Source

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

To ask the Secretary of State for Communities and Local Government, what steps his Department is taking to ensure that part-owners do not face above-inflation increases to service charges under shared ownership schemes.


Answered by
Brandon Lewis Portrait
Brandon Lewis
This question was answered on 27th October 2014

Shared owners have a full repairing lease and are financially responsible for all maintenance charges and outgoings, in the same way as any other leaseholder or homeowner.

The Government has no power to intervene in how housing associations, which are private, non-profit making organisations, carry out their maintenance or repair works. However, the Landlord and Tenant Act 1985 requires that service charges are only payable where the costs incurred are reasonable.

Where they believe that the service charges they are being asked to pay are unreasonable, leaseholders - including those who have purchased under a shared ownership scheme - have a number of statutory rights and protections in respect of those service charges, and the management of their property. These include:


- The right to apply to the First-tier Tribunal (Property Chamber) to determine the liability to pay and reasonableness of service charges.
- The right to write to their landlord to request a written summary of the costs which make up the service charges, and to require the landlord to provide reasonable facilities to inspect the accounts, receipts and other documents supporting the summary.
- Where new or extended services are introduced and where an additional charge may need to be made, landlords are expected to consult appropriately with tenants before introducing these services and associated charges.

Free initial advice and information on leaseholders' rights can be obtained from the Leasehold Advisory Service (LEASE). This is a specialist body, funded by the Department for Communities and Local Government, to provide initial advice and information on a wide range of residential leasehold issues.

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