What discussions has the Cabinet Secretary had with landlords and owners of high-rise developments regarding service charge increases which are higher than inflation?
I have met with Developers, Managing Agents and leaseholders where I have pressed the need for fairness, openness and transparency in relation to service charge increases. We know that issues around service charges are being experienced across the UK, so this is an issue we are also discussing with the UK Government.
The Leasehold and Freehold Reform Act was given Royal Assent on 24 May 2024. The Act includes provisions to increase transparency of service charges, to end the practise of commission taking in the arrangement of buildings insurance, which is paid for by leaseholders, and to improve the legal costs regime so that leaseholders do not have to pay their landlord or freeholder’s legal costs when challenging the reasonableness of service charges via the tribunal.
Implementation of the 2024 Act depends on the passage of a significant programme of subordinate legislation, both by Welsh Ministers and by the Secretary of State. We are working closely with UK Government on the programme of work required to commence the Act, to ensure the benefits it will bring will be felt in Wales as soon as possible.