Block management expert Urban Owners has launched a campaign calling for the government to protect leasehold property owners, most commonly those with a flat or apartment, from excessive fees and malpractice.
According to the group, a lack of transparency over the service charges that leaseholders are required to pay their freeholder is costing them hundreds of pounds each year. Collectively, the estimated total is £700 million.
Urban Owners believes that leaseholders’ limited understanding is allowing malpractice to spread through the property management industry, with excessive fees mainly due to agents demanding hidden sales commissions on building insurance.
The organisation has called for a simple change to existing legislation, which it hopes would ensure transparency over property service charges.
Steve Wylie, director at Urban Owners, commented: “With hundreds of thousands of leaseholders paying hundreds of pounds a year in unjust and unnecessary charges, the status quo in the leasehold property management industry cannot continue.
“Transparency is needed and the government must act to stop dishonest practice among managing agents, which frequently sees extortionate hidden sales commissions added to a block’s annual service charges.
“We believe that a change to existing legislation could help to rectify the problem simply and effectively and is the only way forward,” he concluded.
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