debates/debates2025-04-07a conversation_10
Source: hansard.parliament.uk (2025-04-07)

UK Parliament Hansard data: debates/debates2025-04-07a conversation_10

Darren Paffey:What steps her Department plans to take to limit excessive service charges imposed on leasehold properties. \p Matthew Pennycook: The Government recognise the considerable financial strain that rising service charges are placing on leaseholders. That is why we intend to consult on the Leasehold and Freehold Reform Act 2024’s provisions on service charges and bring them into force as quickly as possible thereafter. This year, we will also consult on strengthening the regulation of managing agents, including, as a minimum, introducing mandatory professional qualifications to set a new basic standard that managing agents will be required to meet. \p Lincoln Jopp: On Friday, I met with Jacqui, Gary and Simon in Fairwater Drive in my Spelthorne constituency. Jacqui’s service charge is going up from £1,500 a year to £4,800. I sat down and had a look at the bills, and they are without any itemisation, so it is impossible to know where to start with the property manager. The Minister wrote in response to a recent written question:

“We will set out our full position on regulation of estate, letting and managing agents in due course.”

Can he give some reassurance to Jacqui, Gary and Simon that their interests will not be put on to the back-burner and suggest when “in due course” might be? \p Matthew Pennycook: I am sorry to hear about the experience of Jacqui, Gary and Simon. As I said, the Government are fully committed to protecting leaseholders from abuse and poor service at the hands of unscrupulous managing agents. Despite committing to regulate the property agent sector in 2018, the hon. Gentleman will know that the previous Government failed to do so. This Government will act. We are looking again at the recommendations of the 2019 report commissioned from Lord Best, which was not acted upon by the previous Government over many years. As I have made clear, we intend to consult on the regulation of managing agents this year. \p Darren Paffey: Many leaseholders in Southampton Itchen who are still waiting for fire remediation work to be done are now being clobbered by extortionate service charges. In one case, a constituent went from paying £800 a year to £3,300 a year, with next to no clarity that that money is being spent well. Despite my recent meetings with developers and management companies, I am yet to be convinced that there is any end in sight for my constituents. What conversations are the Government having with management companies that are letting service charges spiral out of control? \p Matthew Pennycook: I recognise, as I said, the challenges experienced by leaseholders. When it comes to insurance, the Minister for Building Safety recently met the industry to discuss how we can bring premiums down. When it comes to service charges, I assure my hon. Friend the Member for Southampton Itchen that we understand, not least because I have significant numbers of such cases in my constituency, the considerable and, in some cases, intolerable financial strain being placed on leaseholders as a result of opaque and unaffordable service charges. We are committed to empowering leaseholders to challenge unreasonable service charge increases, and my hon. Friend will not have to wait long for us to take action to that end.