Written question asked by Oliver Heald (Conservative) on Thursday, 15 March 2007, in the House of Commons. It was due for an answer on Monday, 19 March 2007. It was answered by Yvette Cooper (Labour) on Tuesday, 20 March 2007 on behalf of the Department for Communities and Local Government.

Landlord and Tenant: Fees and Charges

Question: To ask the Minister of State, Department for Constitutional Affairs whether she plans for freeholders to have an obligation to consult residents or leaseholders on service charges for the provision of (a) a managing agent and (b) the provision of buildings property insurance; and what anti-avoidance measures are in place to avoid the consultation requirements being sidestepped by the rolling renewal of agreements of less than one year.

Answer: I have been asked to reply.Communities and Local Government is responsible for leasehold issues. Legislation provides that landlords are required to consult with leaseholders where an agreement of more than 12 months is to be entered into that will incur expenditure to be funded through leaseholder service charges. This includes agreements with managing agents or relating to building insurance. Parliament agreed during the passage of the Commonhold and Leasehold Reform Act 2002 that agreements of 12 months or less should not automatically require consultation. However leaseholders with agreements of 12 months or less do have the right to challenge the reasonableness of service charges they may be asked to contribute towards.

Secondary information