London Mayor Calls for Protection Against Unfair Service Charge Increases for Leaseholders

London Mayor Sadiq Khan has taken a stand against unjust service charge increases faced by leaseholders in the city. He called for a law to empower residents to refuse payments when charges are unfair or unexplained, highlighting concerns over landlords taking advantage.

The Observer recently exposed some of the UK‘s major housing providers imposing significant hikes in service charges on leaseholders, with some residents experiencing severe financial strain as a result. With 1.4 million leasehold properties in London, a quarter of the country’s total, the issue has become a pressing concern.

In his push for reform, Khan emphasized the need for leaseholders to have the right to withhold payment for service charges that lack proper justification. He urged for this provision to be included in the ongoing leasehold and freehold reform bill passing through parliament, putting pressure on Levelling Up Secretary to address the issue effectively.

Khan’s proposal seeks to protect leaseholders from what he describes as a “shameful abuse of power” by certain landlords and freeholders, highlighting instances where charges have become financially crippling. He stressed the importance of stronger rights for leaseholders to address unfair practices and to hold landlords accountable.

Under Khan’s plan, leaseholders would be able to challenge service charges that are not adequately explained or justified in writing, such as through a detailed account statement. He also called for expanded powers for the housing ombudsman to oversee and regulate service charge levels, along with easier avenues for leaseholders to take legal action against landlords if necessary.

The issue of escalating service charges has become a central theme in Khan’s mayoral re-election campaign, as he faces competition from Susan Hall, who has focused on housing affordability and community preservation. With housing a critical concern for London residents, the outcome of the election may have a significant impact on the future of leasehold regulations in the city.