New measures for leaseholders to challenge ‘unfair and unreasonable’ freeholder practices
Summary
The government has announced new measures to improve transparency around leasehold service charges, including clearer disclosure of insurance costs, commissions and administration fees. It also plans to stop freeholders recovering legal costs from leaseholders who challenge charges, although ministers said the reforms will not reduce costs in the short term.
Why it matters
Surveyors involved in leasehold blocks, service charge administration and building management will need to understand the new disclosure expectations and phased implementation timetable. The changes are likely to increase scrutiny of service charge accounting, insurance arrangements and supporting documentation.
Key points
- Leaseholders will be entitled to clearer information on service charges and related costs.
- Disclosure will include building insurance details, commissions and administration fees.
- Legislation is planned to stop freeholders reclaiming legal costs from leaseholders who challenge charges.
- Standardised service charge forms will be introduced in the private rented sector, with councils and housing associations following later.
- Implementation is staggered to allow landlords and managing agents time to update systems and reporting.
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