Service charge 'wild west' needs regulator says MP

A "wild west" of housing providers levying unfair service charges on tenants has been raised in parliament.

Liberal Democrat MP Layla Moran called for the government to implement a cap and introduce a new regulator at Prime Minister's Questions.

She told MPs she is dealing with two cases in Oxford where tenants are seeing steep rises and new, unnecessary, charges.

Sir Keir Starmer said the government is implementing the "Leasehold and Freehold Reform Act", which would protect leaseholders from "abuse and poor service".

Ms Moran raised the case of Rebecca in Oxford, who is a tenant of housing association GreenSquareAccord.

She spoke to the BBC - and said the service charge for her flat has gone from £11.94 per week when she moved in four years ago, to £34.40 now.

As a full time student and single mum, the service charge is adding to the debt she will owe after her course finishes - but she is also worried about how she will afford it once she graduates.

She said: "I think it's shocking. I think it's unfair.

"I'm extremely grateful to be able to have a roof over mine and my son's head.

"But also I sort of feel like I'm trapped if I'm not happy with this tenancy, there's not really anywhere for me to go.

"Food prices are extortionate, the bills are extortionate, the water is extortionate and it just feels like for me it's just like an additional problem.

"It's just a real worrying, daunting feeling all the time."

The Oxford West and Abingdon MP, Ms Moran, told parliament that this was not an isolated case.

She said: "They are not the only provider doing this. It's a wild west out there.

"So will this government consider Liberal Democrat plans for a new regulator and a cap on these outrageous rip-off service charges?"

The Prime Minister responded by saying she had made "good points".

He said: "We are implementing the Leasehold and Freehold Reform Act, which is long overdue, providing homeowners with greater rights, powers and protections.

"Through this, we will strengthen regulation to protect leaseholders from abuse and poor service, which she has highlighted, and bring the injustice of the leasehold to an end."

GreenSquareAccord said it recognised that "rising charges add additional pressure for customers" in a "difficult economic landscape".

A spokesperson added: "We are a not-for-profit social housing organisation and when the costs of providing services to a building increase, the fair and ethical way to recover those costs is to pass them to customers who receive those services.

"We send a detailed breakdown of rent and service charges to all customers in advance of increases coming into effect, in line with the terms of their agreements.

"We also provide financial support to customers facing challenges."

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