Latest news with #servicecharges


Argaam
10-07-2025
- Business
- Argaam
GACA seeks public input on draft service charge framework
The General Authority of Civil Aviation (GACA) launched a draft regulatory framework for service charges on the "Istitlaa" platform, inviting public consultation. GACA said the proposed framework aims to update the existing regulations in a way that enhances competitiveness and supports the authority's financial sustainability. The authority added that the framework is subject to future updates or additions, all of which will become integral parts of the regulation once approved. The table below shows the service charges for economic licenses: Type of License Fee (SAR) Duration Issuance of an economic license for a national scheduled air carrier (incl. AOC) 700,000 5 years Renewal of an economic license for a national scheduled air carrier (incl. AOC) Free of charge 5 years Issuance of an economic license for a national non-scheduled air carrier (incl. AOC) 500,000 5 years Renewal of an economic license for a national non-scheduled air carrier (incl. AOC) Free of charge 5 years Issuance of an economic license for on-demand air carrier (incl. AOC) 300,000 5 years Renewal of an economic license for on-demand air carrier (incl. AOC) Free of charge 5 years Issuance/Renewal of an economic license for a foreign air carrier Free of charge 5 years Issuance/Renewal of economic approval for foreign charter carriers for Hajj/Umrah Free of charge According to season Issuance of economic license for aviation services representative 25,000 5 years Renewal of economic license for aviation services representative 15,000 5 years Issuance of limited capacity certificate 111,000 One-time Issuance of economic license for ground handling provider at Category (A) airport 200,000 5 years Renewal of economic license for ground handling provider at Category (A) airport 150,000 5 years Issuance of economic license for ground handling provider at Category (B) airport 100,000 5 years Renewal of economic license for ground handling provider at Category (B) airport 50,000 5 years Issuance of economic license for ground handling provider at Category (C) airport 50,000 5 years Renewal of economic license for ground handling provider at Category (C) airport 30,000 5 years Issuance of economic license for air cargo services (excluding regulated agents) Free of charge Annually Issuance of economic license for regulated air cargo agent 125,000 5 years Renewal of economic license for regulated air cargo agent 65,000 5 years Issuance/Renewal of economic license for flight procedure design service provider 30,000 5 years


Times
07-07-2025
- Business
- Times
Leasehold reform delays leave homeowners in financial limbo
Almost three in five leaseholders are struggling to sell their home as they wait for government ministers to deal with high maintenance costs. An Opinium survey paints a stark picture of financial and personal insecurity among leaseholders, with 58 per cent of respondents reporting that their ability to sell their home has been hampered by onerous clauses and maintenance costs. A staggering 77 per cent saw a rise in service charges in the past year — of whom 24 per cent experienced an increase of more than £1,000 a year. Planned reforms include improving the section 20 'major works' process to prevent leaseholders from being hit with large, unexpected bills without notice. Leaseholders will also gain the power to demand a switch or veto a landlord's choice of managing agent. Additionally, mandatory qualifications will be introduced for managing agents to stamp out bad practice and poor service. Matthew Pennycook, the housing minister, says: 'The cost of living remains a pressing concern for leaseholders and many are struggling financially as a result of high and rising service charges, and other opaque and excessive leasehold costs.' • Read more expert advice on property, interiors and home improvement Harry Scoffin, founder of Free Leaseholders, the campaign group that commissioned the Opinium poll, thinks Whitehall is taking too long to change the status quo. Some of the proposals, such as giving leaseholders the power to switch managing agents, were recommended in a report by Lord Best as long ago as 2019. Scoffin says: 'The government appears to be going slow and tinkering at the edges, burying us in consultations and hiding behind the judicial review 'lawfare' by the freeholder lobby. 'As the Opinium polling for Free Leaseholders shows, leasehold is treading heavily on people's lives, robbing us of control over our finances, denying us the freedom to sell up for better opportunities and sabotaging our plans to start a family. The stress of being looted in a home that you believed you bought and own by a landlord you never thought you'd have is intolerable.' • Who are the 'shadowy' lobbyists trying to save leasehold? The poll highlights how leasehold is impinging on fundamental life decisions, with 43 per cent of the 1,000 leaseholders surveyed stating it has impacted their ability to start a family, and 55 per cent their ability to move to a larger property. Younger leaseholders (aged 18-34) are disproportionately affected, with 73 per cent in this age group feeling unable to move to a larger home. Jo Cullen, a 33-year-old leaseholder who lives in an east London block of flats, believes leasehold issues have brought her life plans 'grinding to a halt'. Her five-year plan to build a family is out of reach and she can no longer afford to freeze her eggs due to the legal costs involved in battling service charges. She doesn't even know if she can sell her flat while in litigation. Cullen has been battling with RMG, the agency that manages her block of flats, ever since she bought her one-bedroom home in 2020. 'I don't feel as though I've even started to settle in. I've just been playing whack-a-mole the whole time,' she says. The Labour government has yet to deliver on a promise to abolish forfeiture, in which the freeholder can seize the property if the leaseholder breaches their lease agreement. Cullen says RMG has threatened her with forfeiture 'in every other correspondence I have with them'. Most of the other leaseholders in her building are foreign investors, making it difficult to connect with neighbours who share similar issues. She's on anti-anxiety medication and her pre-existing seizure condition has worsened. She feels she's 'just drifting in kind of in limbo' and is 'not the same stable functioning person that I was before'. • My neighbour won't pay her share of the block's service charges Cullen has faced tribunal proceedings against RMG over alleged non-payment of service charges — she claims the charges are highly inconsistent. In the first case, RMG dropped its claim, and a second claim was also dropped, due to an admin error made by RMG. She is now awaiting the outcome of three additional cases that have led to court proceedings. Under leasehold rules, she is still liable to pay RMG's court costs. Government reforms will scrap the presumption that leaseholders have to pay their landlord's litigation costs when successfully challenging service charges. In response, RMG said it recognised that debt collection could be 'distressing', but that service charges fund essential services. An RMG spokesman told The Times: 'We do not recognise the wider accusations made and are encouraging Mrs Cullen to work through our formal complaints processes so her concerns can be investigated thoroughly and fairly.' Meanwhile, Alan* still can't sell his flat in Newcastle upon Tyne due to an onerous ground rent clause. A pensioner in his eighties, Alan has not yet pursued a deed of variation to alter the ground rent due to the high cost and the expectation that the situation would be abolished by the government. He has contacted his MP multiple times but received no feedback on the issue. 'I think there must be strong lobbying by influential freeholders,' he says. Alan bought his leasehold flat in 2017 believing the lease terms were standard, as advised by his solicitor. 'It was only when a neighbour wanted to sell six years later, and he couldn't, that I had to dig into all of this,' he says. His previous leasehold flat had a ground rent that escalated in line with the retail price index (RPI), which he considered acceptable. His current lease, however, has a five-year escalation formula indexed back to the RPI in 2017, meaning it increases cumulatively and will eventually exceed the value of the apartment. • Can we claim adverse possession of the freehold of our house? He pursued a case with the legal ombudsman due to a lack of advice from his conveyancing solicitor, and it found that none of the 20 apartments in his building were properly advised. Alan is a member of the National Leasehold Campaign, which has about 33,500 members on its Facebook group, and he believes the leasehold system is unfair and exploitative. He says, 'It's not economically generating anything, except some income for people who don't do anything to deserve it.' The government's consultation on restricting ground rents for existing leases was launched in November 2023, but ministers still haven't published the outcome. The government has also pledged to make lease extensions cheaper by introducing a standard formula to work out how much it will cost. Currently, it is up to the freeholder and includes 'marriage value', which increases lease extension costs once a lease drops below 80 years, impacting mortgageability. Mark Tomlinson, 59, a former bank employee who was made redundant during the Covid pandemic, can't sell his two-bedroom flat in Sunderland unless he pays about £30,000 to extend the lease. This sum is the same amount he paid for the property in 1992. When he bought the flat, there were 67 years remaining on the 99-year lease, but Tomlinson assumed he would be offered the chance to buy the freehold eventually. Tomlinson has experienced great distress from the tenants who live either side of him. 'It would be a never-ending cycle of noise, dogs barking, dog excrement all over my garden and taunts from the tenants when passing them in the street,' he says. This prompted him to sell the flat, but then he overheard a conversation among his neighbours about lease extension costs, prompting him to research online. None of these implications were explained by his conveyancer at the time of purchase, Tomlinson claims. With 34 years remaining on the lease, Tomlinson estimates he'd have to drop the price by at least 30 per cent of its current market value to sell the property. Even a quick-sale property company wasn't interested in buying it. Tomlinson bought a run-down two-bedroom house nearby to live in instead and is now a reluctant landlord. 'The flat is like a ball and chain. I don't want to be a landlord but I don't want to give it away either.' * Last name withheld


Telegraph
07-07-2025
- Business
- Telegraph
Landlords ‘looting' millions of leaseholders under Labour
Labour is allowing England's five million leaseholders to be 'looted' after stalling on its pledge to abolish the centuries-old system, campaigners have warned. A series of reforms aimed at boosting leaseholder powers have been unveiled by the Government, but critics argue they will fail to deliver change. Under new rules, leaseholders will be able to more easily challenge extortionate service charges, which they are required to pay to cover the upkeep of shared areas in their building. The new proposals – labelled 'performative nonsense' by campaigners – come after Labour previously rowed back on a commitment to abolish leasehold within 100 days of taking power. Housing minister, Matthew Pennycook, said the party still plans to bring the 'feudal system' to an end, but a timeline on the pledge has not been made clear. The smaller reforms have been proposed in a new consultation unveiled by Angela Rayner's Ministry of Housing, Communities and Local Government. It says leaseholders will receive a standardised service charge documentation each year which will spell out clear and detailed information about how their rates are calculated and spent. This is hoped to 'make it easier for them to challenge unreasonable bills, and potentially save money where expenses are unjustified'. Further reforms are aimed at stopping leaseholders who have successfully challenged their bill from having to automatically pay for landlords' litigation costs. Property managers will also be forced to qualify as professional practitioners for the first time. Mr Pennycook said: 'This bold package of reforms will arm leaseholders with greater rights and protections, and empower them to challenge poor practice and unreasonable charges and fees.' But Harry Scoffin, of the campaign group Free Leaseholders, said the proposals do not go far enough and leaseholders will continue to be 'looted' by landlords. He said: 'There is this endless number of consultations. The Government is investing all of this energy on tweaking the current system, rather than abolishing leasehold. We will continue to be looted. 'It's a real worry. Leaseholders are exhausted, and do not want to spend years of their life becoming serial litigators challenging their landlords, which is what would happen here. 'The Government says the reforms will strengthen the arm of leaseholders, but this won't work. These tribunals aren't friendly and leaseholders are sometimes up against KCs, literally the creme de la creme lawyers in the land.' Posting on X, Jay Silva wrote: 'More dithering. Why do we need more consultations? How many more of them do successive governments want?' Another user labelled the proposals 'performative nonsense'. They said: 'You said you would abolish leasehold and have not. This is more stalling.' Last October, Mr Pennycook warned that leasehold reform could take as long as five years, describing it as a 'whole of Parliament commitment'. In its manifesto, Labour said it would 'ban new leasehold flats and ensure commonhold is the default tenure'. The party went on to reiterate this promise in the King's Speech, also promising to regulate ground rents and to 'act quickly' to implement its reforms. In May 2023, Lisa Nandy, the former shadow housing secretary, said a future Labour government would bring forward legislation to abolish leasehold within 100 days. But in April, the party quietly dropped this pledge. The Leaseholders Charity said the Government's latest proposals – which are out for consultation until the end of September – were announced 'with as much enthusiasm as a visit to the dentist'. There are 4.8 million leasehold properties in England, equivalent to a fifth of the country's housing stock. In 2023-24, leaseholders paid an average annual service charge of £1,720, but some costs spiralled to five figures.


The Sun
04-07-2025
- Business
- The Sun
Fresh hope for thousands of households suffering with extreme service charges planned by government law change
THOUSANDS of households will be able to challenge extortionate leasehold service charges more easily, the government has said. Households who live in leasehold properties pay fees to the person who owns the building or their managing agents for services including building insurance and maintenance. These service charges can include repairs and maintenance for things such as the roof, windows, drains and gutters. The payments are usually due twice a year and the exact amount can vary depending on the costs the landlord incurs. This can mean that they can be hit with surprise bills that can often run into thousands of pounds. Almost five million homeowners pay service fees, which have risen by 11% in the last year to an average of £2,300 a month, according to Hamptons. Leaseholders have been promised that the system will change by several governments and Labour when it was in opposition. The government is hoping to tackle this problem by forcing companies to be transparent about the fees they are charging, Sky News reports. The reforms will be introduced after a consultation, the government said. Leaseholders will receive standardised service charge documentation that will explain clearly and in detail how the fees are calculated and where their money is being spent. Other reforms will stop leaseholders from automatically having to pay for a landlord's legal costs even if they have won their case. The changes will allow homeowners to challenge unreasonable service charges more easily, housing minister Matthew Pennycook said. He added that the changes will put pressure on managing agents to reduce the fees. It will also introduce a strict new qualification system for managing agents to try and improve standards in the sector. Mr Pennycook told Sky News: "The system has some inherent inequities in it that do allow leaseholders to be gouged and particularly when it comes to managing agents there are unscrupulous people out there. "They are abusing leaseholders and there's poor practice. How do service charges work? Service charges are fees paid by a leaseholder or resident and are set by the landlord. The amount varies every year depending on costs to the landlord. The details are usually set out in your lease. Landlords usually calculate the fee based on what they think they will spend. At the end of the year they should provide a statement. Some leases allow landlords to ask for contributions towards a "sinking fund" which is a reserve that can be built up for larger scale works. These could include repairing the roof of the building or fixing issues with the foundations. "The reforms we are announcing today and reforms that are to come are going to bear down managing agents and ensure the sector as a whole is properly regulated." Unfair charges Some leaseholders have said that they have been charged unfair fees. Judges have made some landlords pay back up to £100,000 after the leaseholders took them to tribunal. In one example, the leaseholders were charged £135 to change two lightbulbs. In February 2023, it was revealed that landlords and insurance brokers were taking up to 60% of the £1.6billion leaseholders paid for building insurance as hidden commissions. New rules now stop insurance companies from choosing policies just to earn the highest commission. But brokers and managing agents are still allowed to take commissions. The government has previously promised to ban excessive building insurance commissions through the Leasehold and Freehold Reform Act 2024. Instead, landlords will only be able to charge a straightforward and fair "permitted insurance fee" for the work they actually do, making costs clearer and protecting leaseholders from hidden charges. However, these proposed laws still need further legislation to come into effect, and the government hasn't yet provided a timetable for this. A spokesperson for the Ministry of Housing previously sold The Sun that "far too many leaseholders" are being hit with "unreasonable and extortionate charges". New rules planned by the government also plan to introduce commonhold agreements to replace leasehold ones. Commonhold allows flat owners to jointly own and manage their buildings, which cuts out landlords and property management companies. But the proposed rules only apply to new homes. How to challenge fees Leaseholders have the right to request extra information from their landlord within six months of receiving a summary of costs. You can challenge a cost if you think it's unreasonable, the standard of work is poor or you don't think you should have to pay it. For example, you could question why you need to pay for lift maintenance if you live in a ground-floor flat and it's not included in your lease. Or you can challenge for communal services, such as a garden that is always closed or a concierge that never has any staff. To challenge these services you need to apply to a tribunal which has the power to rule on whether the service charge is reasonable or payable. In England this is the first-tier tribunal (property chamber). In Wales it's the leasehold valuation tribunal. Applying to the tribunal usually costs a fixed fee of £114, but you may be able to waive it if you have certain benefits. If your case is transferred from court to the tribunal, you'll only pay the difference between the court fees and the tribunal fee - or nothing if you've already paid more than £114 in court fees. If a hearing is scheduled, you'll need to pay an additional £227 hearing fee. Speak to the Leasehold Advisory Service online at or call them on 020 7832 2500 to find out more and get free advice on service charge issues. You could also apply to the Housing Ombudsman if you want to complain about how your service charge fees have been managed. The Ombudsman said cases have jumped by 25 per cent in the last four years. .


The Guardian
04-07-2025
- Business
- The Guardian
Housing minister vows to crack down on property management ‘wild west'
The housing minister has promised to crack down on unfair service charges and what he called the 'wild west' of property managing agents as he launched the next stage of the government's reforms of the leasehold system. Matthew Pennycook told the Guardian he wanted to stop a number of unfair practices undertaken by some companies, including overcharging and imposing large, unexpected repair fees. He was speaking as the government launched a consultation into measures such as making property managers provide more transparent information on their fees and forcing them to qualify as professional practitioners for the first time. The consultation is the latest step towards what the government promises will be an eventual end to the 'feudal' leasehold system, which applies to 5m homes in England. Pennycook said: 'Managing agents play a key role in multiple-occupancy buildings, and will play an even bigger role in the future, but it is a bit of a wild west at the minute.' Speaking about the new qualification system, he said: 'It is very easy to set yourself up as a managing agent. A group of us could do it just by renting an office on top of a newsagent in the high street … we know there are really bad practices out there.' Talking about the changes to service charges, he added: 'We are setting out plans to protect millions of leaseholders across the country from opaque and unfair service charges and other fees which they incur. 'Leaseholders are suffering and they need urgent relief – that's why we are doing what we are.' Pennycook has been pushing through a series of changes to the leasehold system in the last year, including implementing parts of the 2024 Leasehold and Freehold Reform Act which was passed by the Conservatives shortly before the general election. Some campaigners have been frustrated with the pace of change, accusing the government of dragging its feet on many of the promised reforms. The government's consultation, which will last 12 weeks, will ask for views on how to impose two major changes: more transparent fees and an end to what many see as unfair legal costs. Under the current system in England and Wales, freeholders and managers do not have to explain why they have charged the fees they have, and many resist doing so even when asked directly by residents. Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion MPs say they have received complaints from their constituents of surprise one-off fees, above-inflation rises in service charges and even bills for repairs which are never carried out. One MP said they had been told of one case where a leaseholder had been charged for repairs to a lift in a building that did not have one. When residents do challenge their property freeholders or service companies in court, they sometimes find themselves saddled with having to pay their opponents' legal costs, even if they have won. The government's consultation will also seek a way to end that practice – though Pennycook admitted there could be a small number of cases where tenants still have to pay back unpaid fees. Ministers will also consult on a new regime for carrying out major repairs, which can currently happen at little notice and at great expense. Pennycook promised a draft leasehold bill, which will include provisions to end the system on new-build flats and to make it easier to convert old properties into other forms of ownership, would be published by the end of the year. 'It will be an ambitious piece of legislation, but there are many moving parts,' he said.