Commons Sense

House of Commons · Ministers' Questions

Service Charge Increases: Leaseholders and Social Housing Tenants

Monday 27 March 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Service charges for leaseholders and social housing tenants must be reasonable and of a high standard.
  • The government plans to legislate to make service charges more transparent for leaseholders.
  • Residents facing high service charge increases can challenge these charges through the housing ombudsman or first-tier tribunal.

Topics (select to filter)

Questions & Answers

Q1 Sarah Olney Lib Dem Richmond Park
Housing
Context

Significant increases in service charges are affecting leaseholders and social housing tenants, causing financial strain.

Question

I am concerned about significant increases in service charges for leaseholders and social housing tenants. Can the government take steps to help tackle these issues?

Answer from Felicity Buchan

Service charges must be reasonable and works and services must be of a reasonable standard. We will empower leaseholders by legislating, so that service charges are more transparent. We are encouraging registered providers of social housing to limit service charge increases for social housing tenants to 7% or less.

Partly answered

Not addressed: The specific ask about legislative steps and timelines was not fully addressed

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Q2 Sarah Olney Lib Dem Richmond Park
Housing
Context

One constituent's service charge will increase from £15.18 per week to £127.74, a significant rise adding over £5,800 annually to their cost of living.

Question

My constituents are facing drastic increases in service charges for housing association properties despite rent caps. One constituent's charge will increase from £15.18 to £127.74 per week. How can these large service charge rises be addressed?

Answer from Felicity Buchan

Service charges are payable only to the extent that the costs have been reasonably incurred. If constituents believe costs have not been reasonably incurred, they can go to the housing ombudsman or challenge leasehold service charges through the first-tier tribunal.

Partly answered

Not addressed: The questioner's specific ask about support for struggling tenants was not directly addressed

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Q3 Sara Britcliffe
Housing Benefits & Welfare
Context

Residents in Hyndburn and Haslingden are facing rent caps below inflation but still experiencing up to 11% increases in service charges, straining their finances.

Question

Resident of Hyndburn and Haslingden face rent caps but also increases in service charges. Can the government set out what support is available for those who cannot afford these combined rises?

Answer from Felicity Buchan

The Treasury has provided a £37 billion package at the autumn statement followed by an additional £26 billion. Service charges should be reasonable, reflecting costs and providing access to the ombudsman.

Partly answered

Not addressed: The specific ask about support for combined rent and service charge increases was not fully addressed

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