Written question asked by Robert Neill (Conservative) on Tuesday, 15 December 2009, in the House of Commons. It was due for an answer on Tuesday, 5 January 2010. It was answered by Lord Austin of Dudley (Labour) on Wednesday, 6 January 2010 on behalf of the Department for Communities and Local Government.

Leasehold: Service Charges

Question: To ask the Secretary of State for Communities and Local Government if he will make an estimate of the incidence of the over-charging of leasehold owners of flats on building insurance by property agents who share commission with freeholders.

Answer: Information is not available on the number of incidents where leaseholders of flats may have been 'overcharged' in respect of the contributions paid towards the buildings insurance premium as a consequence of commission being paid to the freeholder and/or managing agent. I am not therefore able to provide an estimate.However, where leaseholders of flats believe that any demand made of them through their service charges for contributions towards building insurance is unreasonable, they have the right to ask a leasehold valuation tribunal to determine the reasonableness of the demand.

Secondary information