UK to crack down on property service charges: report
Housing Minister Matthew Pennycook has announced a crackdown on unfair service charges as part of reforms to the country’s leasehold system.
Speaking to the Guardian, Pennycook said he wanted to stop a number of unfair practices undertaken by some companies, including overcharging and imposing large, unexpected repair fees.
“Managing agents play a key role in multiple-occupancy buildings, and will play an even bigger role in the future, but it is a bit of a wild west at the minute,” he said. “It is very easy to set yourself up as a managing agent. A group of us could do it just by renting an office on top of a newsagent in the high street … we know there are really bad practices out there.”
“We are setting out plans to protect millions of leaseholders across the country from opaque and unfair service charges and other fees which they incur. Leaseholders are suffering and they need urgent relief – that’s why we are doing what we are.”
Making it easier to buy a home
Pennycook’s comments come after the Financial Conduct Authority announced a public consultation on the future of the mortgage market and making it easier to buy a home in the UK.
The consultation will consider several key issues, including:
- Potential to update responsible lending rules to support wider access to sustainable home ownership;
- Ensuring the regulatory framework and the market are prepared for the likely future increases in demand for later life lending;
- Introducing more flexibility to promote consumer understanding, information needs, and innovation;
- Rebalancing the collective risk appetite in mortgage lending.
Home ownership has become an increasingly challenging aspiration for many, with more people renting for longer periods. Those that do rent face higher housing costs and less security.
The FCA’s Financial Lives 2024 survey shows those who are renting are more likely to display characteristics of vulnerability and to be in poor health compared with other UK adults.
