Care Homes: Service Charges

Department for Communities and Local Government written question – answered on 21st October 2015.

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Photo of Ben Howlett Ben Howlett Conservative, Bath

To ask the Secretary of State for Communities and Local Government, what steps the Government is taking to prevent price-fixing in service charges by providers of retirement homes.

Photo of Brandon Lewis Brandon Lewis Minister of State (Communities and Local Government)

The law provides a framework of rights and protections for residential leaseholders where service charges and the management of their property are concerned.

These rights allow leaseholders to hold their freeholder and managing agent to account. They include the right to be consulted about proposed major works and long term agreements, to challenge the reasonableness of service charge demands at an independent tribunal, to seek the appointment of a new manager and, in some cases. to take over the management of the block of flats where they live.

Price-fixing is a serious matter and any evidence of this should be reported to the Competition and Markets Authority for consideration.

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