Commons Sense

House of Commons · Ministers' Questions

Social Housing: Service Charges

Monday 2 December 2024 · 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 2 Not answered 0

Key points

  • Government acknowledges the financial strain on leaseholders due to variable service charges
  • Leasehold and Freehold Reform Act 2024 aims to enhance transparency and ease of challenging unreasonable service charges
  • Minister is willing to discuss additional protection for leaseholders in the private sector

Topics (select to filter)

Questions & Answers

Q1 Paul Kohler Lib Dem Wimbledon
Housing
Context

Residents in Wimbledon's social housing face significant financial strain due to rising service charges. For example, Clarion Housing Association tenants are seeing a 50% increase this year.

Question

What assessment has the government made regarding the impact of service charges on residents in social housing? The Minister acknowledges that variable service charges can be challenged at tribunals and by the housing ombudsman, but what additional measures will provide leaseholders with better protection from unaffordable charge increases?

Answer from Matthew Pennycook

The Government recognise the financial strain on leaseholders and are exploring additional measures. The Leasehold and Freehold Reform Act 2024 aims to enhance transparency of service charges, making them easier to challenge if deemed unreasonable.

Partly answered

Not addressed: Specific powers for the housing ombudsman to demand compensation payments were not addressed.

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Q2 Paul Kohler Lib Dem Wimbledon
Housing
Context

Clarion Housing Association tenants are facing a significant increase in service charges, with some seeing an additional £1,000 or more this year.

Question

Does the Minister agree that leaseholders deserve transparency regarding their service charges rather than unexpected increases? What actions will be taken to give the housing ombudsman the authority to demand compensation for unreasonable service charge hikes?

Answer from Matthew Pennycook

The Minister acknowledges concern over rising charges and highlights measures in the Leasehold and Freehold Reform Act 2024 designed to enhance transparency. Further details on implementing these provisions are available from a written ministerial statement.

Partly answered

Not addressed: Specific authority for the housing ombudsman to mandate compensation payments was not addressed.

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Q3 Emily Darlington Lab Milton Keynes Central
Housing
Context

Social housing providers and councils operate within a regulated service charge regime that forbids profit-making. The Housing Ombudsman Service handles complaints.

Question

Given the regulated service charge regime for social housing, will the Minister consider implementing similar regulations to prevent profiteering in the private sector?

Answer from Matthew Pennycook

The Minister is willing to discuss further with the hon. Member on what additional protection leaseholders in the private sector might need.

Not addressed: No clear commitment was given regarding regulatory measures for the private sector service charges.

How: Willing To Have A Conversation

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