MP calls for regulator to oversee 'wild west' of service charge

Concerns over soaring and seemingly unfair service charges by housing providers were raised in parliament this week. Liberal Democrat MP Layla Moran urged the government to introduce both a cap on these fees and a dedicated regulator during Prime Minister's Questions.

Ms Moran highlighted two cases from Oxford where tenants faced steep increases in charges and additional costs deemed unnecessary. She cited the example of Rebecca, a tenant of housing association GreenSquareAccord, whose weekly service charge rose from 11.94 to 34.40 over four years. As a full-time student and single mother, Rebecca expressed anxiety over managing these costs both now and after graduation, calling the situation "shocking" and "unfair."

Speaking in parliament, Ms Moran emphasized that Rebecca's case was far from isolated. "They are not the only provider doing this. It's a wild west out there," she said, urging the government to consider a new regulator and a cap on excessive service charges.

Prime Minister responded that the points raised were valid, noting the ongoing implementation of the Leasehold and Freehold Reform Act. He stated the legislation is designed to give homeowners greater rights and protections and to strengthen regulation against abuse and substandard service.

GreenSquareAccord acknowledged the challenges posed by rising charges, describing them as additional pressures in a difficult economic climate. A spokesperson emphasized that the organization is not-for-profit and recovers service costs fairly, providing customers with detailed breakdowns of charges in advance and offering financial support when needed.

Author: Ava Mitchell