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Cap on Service Charges
Trowers Public Insight

Cap on Service Charges

Updated cap on service charges for central government funded works - "Consultation on Protecting Local Authority Leaseholders from Unreasonable Charges."

After a number of widely publicised statements by the Rt Hon Eric Pickles, the Secretary of State for Communities and Local Government has now issued a consultation on The Social Landlords Discretionary Reduction of Service Charges (England) Directions 2013 and The Social Landlords Mandatory of Service Charges (England) Directions 2013.

Each of the discretionary and mandatory caps limits the amount of service charges that may be recharged to leaseholders in any five-year period to £10,000 outside London or £15,000 in London. These updates to the 1998 directions and extend the sources of central government funding which Council may recieve that will require the Council to cap the amount recharged to leaseholders. In particular, any projects that are wholly or partly funded by the 2013 Spending Round Decent Homes Funding will be subject to the cap on service charges.

The consultation was issues on 7 October 2013 and responses must be submitted by 18 November 2013 and can be found on the GOV.UK website at: https://www.gov.uk/government/consultations/protecting-local-authority-leaseholders-from-unreasonable-charges

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