Service Charges Probe

People living in leasehold properties could be being treated unfairly by freeholder landlords and managing agents who dictate the service charges they must pay for maintenance and insurance. Officials at the Office of Fair Trading will examine the market for property management services to establish whether it works against the UK's estimated 5million leaseholders. The OFT has asked for interested parties to provide their views on the sector. Its study will examine private leaseholdings as well as local authorities and housing associations. The study will not examine the process of renewing leaseholds when they get closer to expiring. Read more on the Daily Mail website.

OFT Recommends Changes in Private Rented Sector

The OFT has published a report which identifies several consumer protection issues in the lettings market.  As part of this report, the OFT analysed nearly 4,000 complaints made by people renting a home as well as those letting out a property. It found that both tenants and landlords were concerned about fees and charges levied by agents, poor service provided and that 'surprise' charges were introduced or 'drip-fed' once contracts have been signed.  The report sets out a number of recommendations for Government, industry, enforcers and others in order to make the market work better for tenants.  Download a copy of the report from the OFT website.