Wimbledon MP demands action in Parliament over service charge scandal
Wimbledon's Liberal Democrat MP, Paul Kohler, has condemned the "shock bills" imposed on leaseholders through variable service charges, with some hit by unpredictable increases of over £1,000.
Recent figures revealed a staggering 48% increase between the estimated and final bills issued to leaseholders in 2023/24 by Clarion Housing Association, Merton's largest landlord.
The data, obtained from Merton Council by the Liberal Democrats, also revealed that the average service charge bill was £269 higher than the estimate residents were given.
On Monday, Paul Kohler MP raised the issue directly with the Minister for Housing and Planning during departmental questions in Parliament.
Kohler, a former lawyer, urged the Government to give the Housing Ombudsman powers to investigate leaseholders' complaints and to demand compensation from landlords for unfair service charges.
At present, leaseholders can only challenge the reasonableness of their service charges through the First-Tier Tribunal – a complex and costly process.
Responding to Kohler, the Minister said that the Government are exploring what more can be done to give leaseholders the protection that they need from unaffordable service charge increases.
On High Path Estate in Wimbledon, residents faced a shocking £1,237 difference between their estimated and final service charge bills.
On 24 of Merton's 34 estates, at least one resident received a final bill over £500 more than their original estimate. Clarion Housing Association's data reveals that 43% of residents who complained about their service charges are yet to receive a resolution.
Commenting, Paul Kohler MP said:
"Leaseholders deserve transparency and fairness, not shock bills. Landlords must urgently improve their processes to provide estimates that are accurate and reliable.
"I'm relieved that the Minister shared my deep concerns about the pressure caused by rising variable service charges. The Government must now act to empower the Ombudsman so that residents have a proper route to hold landlords to account for these irresponsible practices."
Further information:
Clarion Housing Association service charge data for 2023/24, detailing variances between estimated and final bills, is attached to this email.
Paul Kohler MP's question at Housing, Communities and Local Government Oral Questions can be found here: https://parliamentlive.tv/event/index/ec0280b8-216f-4436-a0bb-7938f6b3cf78?in=15:13:29