
The Law Commission published its report on Technical Issues in Charity Law in September 2017 following a public consultation.
The Directions have been introduced following Government consultation. The Government has introduced new Directions that cap the amount social housing landlords in England can recover through service charges for the cost of repairs, maintenance or improvements. The Directions have been introduced following Government consultation.
The Social Landlords Mandatory Reduction of Service Charges (England) Directions 2014 include the following key points:
The Directions do not apply to works previously funded and costs charged.
The Social Landlords Discretionary Reduction of Service Charges (England) Directions 2014
These Directions permit social landlords to reduce service charges for the costs of repairs, maintenance or improvements below the mandatory cap where it determines it reasonable to do so. This is subject to specified criteria (for example, whether payment of the charges would cause exceptional hardship, any benefit received by the leaseholder, any estimate given prior to the purchase of the property) being considered. This reduction can apply to costs already demanded or paid.
There is however no obligation on landlords to apply any reduction or waiver.
Other Outcomes of the Consultation
The Consultation also identified a range of points that DCLG intends to address in the future:
It’s ‘watch this space’ for these points.
If you would like further information in relation to service charges, either generally or in relation to specific circumstances, please contact:
Emma Duke on 0121 214 3617 or emma.duke@anthonycollins.com; or
Jonathan Cox on 0121 212 7453 or jonathan.cox@anthonycollins.com.
The Law Commission published its report on Technical Issues in Charity Law in September 2017 following a public consultation.
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