New rules on service charges

News Category: Legal

The government has outlined plans which would mean that landlords could have to regularly explain to tenants how service charges are being spent.

Under the new rules, set out by the Communities and Local Government department, landlords would have to produce an annual statement for tenants which explained exactly how any service charge levied on the property was being spent.

It is hoped that the proposed changes would improve the transparency around how landlords hold money.

Tenants with landlords who fail to produce the accounts will be able to legitimately withhold service charges.

"People should be able to see what they are paying for and a yearly statement of account will create transparency and ensure that tenants receive information about service charges," explained junior housing minister Iain Wright.

"Tenants will be better able to check that they are receiving value for money and see whether sums paid towards the upkeep of their property arebeing used for the right purpose."

The proposals are currently awaiting public consultation and the government urged interested parties to express their opinions on the potential regulation before October 4th.