Elaine Dobson, partner at Bircham Dyson Bell LLP believes that the Greater London Authority's review of residential leasehold service charges could be seen to be a waste of tax payers' money as legislation is in place to protect tenants and landlords.
"The current legislation relating to service charges is heavily slanted towards the protection of tenants and law exists to do what is being suggested within the consultation reference points and or is determined by the terms of most leases - why spend money to determine what is already legislation?" asks Elaine Dobson.
The consultation will consider how service charges are challenged and disputes resolved, whether or not they are transparent and whether tenants get a say in the maintenance and repairs to a building - all of which is covered by current legislation.
"But the Landlord and Tenant legislation sets out the law and procedures for service charges, defining what is considered a service charge, setting out requirements for reasonableness and for prior consultation of leaseholders - and so the legislation already exists."
"However I do think that the part of the review dealing with how charges differ between different 'types' of landlord and the quality of management between different types of landlords is worthwhile and in particular the variation in administration charges imposed by landlords and the input on what constitutes good practice for management of residential leasehold properties," said Elaine Dobson.
"The consultation on the level of service charges, tenants consultation and resolving disputes will be in considered to be a waste of tax payers' money and wholly unnecessary and therefore perhaps the GLA should rethink the points of reference," concludes Elaine Dobson.
Service charges cover the cost of services provided by a landlord as set out in the lease and can include maintenance, repairs and rebuilding as well as common services such as buildings insurance, utilities, lifts, lighting, cleaning and gardening.
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