Andy Burnham says it is ‘simply wrong that millions of leaseholders can be hit with unfair charges, then face another bill just for challenging them’ as he promises shake-up
Andy Burnham said the government will ‘act quickly’ to shake-up the leaseholders system (Image: Leon Neal/Press Association)
Millions of leaseholders will get stronger rights to challenge unfair and rip-off service charges.
New protections will stop struggling households from being left out of pocket and saddled with landlords’ legal bills for challenging fees.
From April 2027, the government said it will be harder for landlords to pass on legal costs – whether a leaseholder wins or loses a claim. The Ministry of Housing, Communities and Local Government said the move will “end a huge barrier to fighting costs” – with landlords set to be forced to go to a court or tribunal to pass on any legal bills.
Andy Burnham said the government will “act quickly” to shake-up the system with new regulations laid in Parliament on Thursday.
The Prime Minister said: “It is simply wrong that millions of leaseholders can be hit with unfair charges, then face another bill just for challenging them. That isn’t right, and where we can act quickly to change it, we will.”
He added: “Today’s changes are only the beginning. We’re giving leaseholders stronger rights now, while we press ahead with the bigger reforms needed to put power back in homeowners’ hands and end the feudal leasehold system for good.”
Officials said leaseholders will also be able to demand information about service charges, including what they are paying for and why.
Reforms to the leasehold system are also planned through the Commonhold and Leasehold Reform Bill – due to be introduced in Parliament before Christmas.
It comes after Housing Secretary Angela Rayner used her Labour conference speech earlier this year to hit out at the “injustice of fleeceholds”.
The top Cabinet minister said she had heard of leaseholders being charged £400 for permission to change their own front door – and a further £60 fee to put a doorbell on the door.
She added at the time: “Yet another example of how people feel powerless. Powerless against the vested interests that only take while giving nothing back in return, which is why we will also cap outrageous administration and permission fees for leaseholders.”
Housing Minister Matthew Pennycook said: “Rapidly escalating and frequently opaque service charges are placing huge financial strain on hard-pressed leaseholders across the country.
“Today, we’re acting to protect them by introducing regulations that will improve the fairness and transparency of service charges so that unreasonable increases can be more easily challenged. As we work to dismantle the feudal leasehold system in this Parliament, we won’t leave existing leaseholders behind.”
