Mayor of London unveils new Charter to protect leaseholders

A new charter is set to give leaseholders in London greater consumer protection by setting good practice for service charges.

Service charges are used by landlords to recover costs from leaseholders for providing services that are agreed in the lease.

The new Service Charges Charter includes a set of commitments that housing providers are expected to comply with to improve the experience of leaseholders.

These include ensuring leaseholders are provided with the information they need to understand their service charges, making sure they are affordable, encouraging design approaches for new builds that minimise the need for service charges, and making leaseholders aware of how to challenge their service charges and the routes to redress that are available to them.

The Mayor of London, Sadiq Khan, said: ‘Shared ownership properties can be a helpful first rung on the housing ladder for Londoners. However, too many homeowners have faced a confusing set of fees and charges. Where service charges are incorrectly administered, leaseholders are often drawn into a time-consuming process to challenge.

‘Our new Service Charges Charter will help shared owners have a better experience of home ownership, reducing stress and worry. Housing providers also recognise the benefits that following Charter can bring – leading to more efficient services, and a reduction in complaints.

‘I’m proud to have hit every single one of my delivery targets in the current Homes for Londoners: Affordable Homes Programme 2016-2023 and I’m determined to continue leading by example, by doing everything I can within my powers to help leaseholders and improve the shared ownership experience for Londoners.’

The Mayor’s previous charter was developed in 2017, but in launching the new Affordable Homes Programme 2021-26, the Mayor committed to working with industry to update the Charter.

All partners in the new Affordable Homes Programme 2021-26 are expected to sign up to the new Charter. The Mayor is also encouraging all Registered Providers directly involved in the development and management of Shared Ownership in London as well as private developers of leasehold homes to sign up and apply the Charter’s principles across their homes.

In related news, while the government outlines its latest plans to replace unsafe cladding, Nottingham City Council has announced ongoing action to support residents living in tall buildings.

Photo by Naveed J