EDM: Retirement leasehold service charges and exit fees

Retirement leasehold service charges and exit fees

Tabled by Edward Morello (Liberal Democrat) 23 signatures

The motion

That this House expresses concern at rising and unpredictable service charges in retirement leasehold properties, which disproportionately affect older people, people on lower incomes and those on fixed incomes; notes concerns that many buyers are not provided with clear or realistic information about long-term service charge liabilities before signing leases, and that executors are burdened with large fees outright after the passing of a relative, alongside council tax liability for empty properties which are difficult to sell; further notes that charges are often presented without transparent breakdowns, that future increases are rarely explained meaningfully, and that some developments operate with artificially low or subsidised charges at point of sale which later rise sharply when subsidies are withdrawn; recognises that many leaseholders have little or no control over escalating costs, making properties difficult to sell and creating financial burdens for families during a cost of living crisis; also notes concerns regarding excessive exit fees, restrictions on subletting and resale, and the conduct of some property management companies; acknowledges calls to regulate property management companies and cap annual increases through lease clauses linked to inflation or requiring approval for higher rises; believes there should be a legal requirement for standardised and simplified disclosure before purchase, including current service charges, historic increases, realistic future projections and any subsidy arrangements; and calls on the Government to improve fairness, transparency and consumer protection in the retirement leasehold sector and ensure older people pay only for the property and services they receive.

Signatories (23)