Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the equitability of service charge terms in TP1 documents for use by freeholders when purchasing properties from developers.
My Department has not conducted a specific assessment about the equitability of service charge terms in TP1 documents for use by freeholders when purhcasing properties from developers.
The level of charges that residential freeholders pay will vary based on several factors, including the types of facilities or services that estate managers need to maintain, and the number of properties required to contribute.
The government remain committed to protecting residential freeholders on private and mixed-tenure housing estates from unfair charges.
We will consult this year on implementing the Leasehold and Freehold Reform Act’s new consumer protection provisions for the up to 1.75m homes that are subject to these charges, and bring these measures into force as quickly as possible thereafter. These include ensuring that homeowners who pay an estate management charge have better access to information they need to understand what they are paying for, the right to challenge the reasonableness at the First-tier Tribunal (in England), and to go to the tribunal to appoint a substitute manager.
The government is also determined to end the injustice of 'fleecehold' entirely and we will consult this year on legislative and policy options to reduce the prevalence of private estate management arrangements, which are the root cause of the problems experienced by many residential freeholders.