MP demands action over ‘shock bills’ for leaseholders
An MP has called for immediate Government action to support leaseholders facing unaffordable service charge increases.
Wimbledon’s Liberal Democrat MP, Paul Kohler, condemned the “shock bills” after new figures revealed a 48 per cent increase between the estimated and final bills issued to leaseholders in 2023/24.
The bills were issued by Clarion Housing Association, which Merton council transferred its housing stock to in 2010.
On High Path Estate in Wimbledon, residents faced a £1,237 difference between their estimated and final service charge bills.
A spokeswoman from Clarion said: “These charges are levied to cover costs, not to make a profit.
“We work to ensure services that are charged for present the best value for money for our residents. In some instances, the actual costs of works that are completed exceed what we estimated they would cost.”
High Path Estate is one of three council blocks in Merton currently under a landmark redevelopment project by Clarion worth £1.3billion. The other two estates are Eastfields and Ravensbury.
While the High Path and Ravensbury estates’ initial phases have already been finished, Clarion issued a warning in April 2020, that action was required to address a programme deficit that posed a “serious risk to deliverability.”
Last week, MP Kohler raised his concerns over unaffordable service charges with the Minister for Housing and Planning, Matthew Pennycook, during departmental questions in Parliament.
The Wimbledon MP urged the Government to give the Housing Ombudsman powers to investigate leaseholders’ complaints and to demand compensation from landlords for unfair charges.
Currently, leaseholders can only challenge their service charges through the First-Tier Tribunal – a complex and costly process.
Responding to MP Kohler, the Minister said the Government is exploring what more can be done to give leaseholders the protection that they need from unaffordable service charge increases.
MP Kohler said: “Leaseholders deserve transparency and fairness, not shock bills. Landlords must urgently improve their processes to provide estimates that are accurate and reliable.
“I’m relieved that the Minister shared my deep concerns about the pressure caused by rising variable service charges. The Government must now act to empower the Ombudsman so that residents have a proper route to hold landlords to account for these irresponsible practices.”
The Clarion spokeswoman said the association is reviewing service charge variances and will engage with residents on the outcome.
A spokesman for the Ministry of Housing, Communities and local government said: “Far too many leaseholders across the country are being asked to pay unreasonable and extortionate charges, and we will bring the feudal leasehold system to an end in this Parliament.
“We will also consult next year on plans to give leaseholders more transparency on the charges they pay as well as greater rights, powers and protections over their homes.”
Pictured top: High Path estate, which is currently under a major regeneration programme led by Clarion housing (Picture: Harrison Galliven)