Feb

Housing minister reveals plans to shake up ‘unfair’ rentcharge system

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Landlords facing unreasonable estate charges for their properties may soon have reason to celebrate as the government says it will repeal the key legislation and standardise the system.

New Housing Minister Christopher Pincher has
promised to begin the process of shaking up the rentcharge
system in England.

In his first foray into housing, Esther McVey’s replacement said he was now
considering the Regulation
of Property Agents working group report and would announce the next steps, “in
due course”.

But he has
confirmed today that the government will repeal the much-maligned Law of
Property Act 1925 and its Section 121 provisions, which enable rentcharges to
be levied.

Said Pincher: “Where people pay estate rentcharges, it is
not right that these property owners have limited rights to challenge these
costs.

“That is why
the Government intends to legislate to give freeholders on private and mixed-tenure
estates equivalent rights to leaseholders to challenge the reasonableness
of estate rent charges.”

A written question from Shadow Secretary of State
for Housing, John Healey, asked Pincher when he planned to bring forward
legislative proposals to protect freeholders against service charges and other
fees.

In reply, he said the Government had asked the working group to
look at how service charges for leaseholders – and estate rent charges for
resident freehold homeowners – could be made more transparent.

The group also considered if other fees and
charges, such as administration charges or permission fees, are justified or
whether they should be capped or banned.

The report, published last summer, was
prompted by accusations that management charges within estates are unfair, not
transparent and difficult to manage.

It suggested the Government looks into a ‘mandatory standardised charges’
form for both leaseholders and freeholders.

Pincher
added: “The Government is committed to promoting fairness and transparency for
homeowners and ensuring that consumers are protected from abuse and poor
service.”

Join in the
latest debate about rentcharges on the LandlordZONE
forum.

Read
the RoPA report in full.

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