Removing capped service charges, is this legal?

koolkat66

I have been a tenant in a Supported Housing Association for 16 years. My rent and service charges have gone up with inflation rates through the years. My service charges have always been 'fixed' (capped). Now the landlord (Housing Association in London) wants to remove the capping, which will increase the charges from £ 400 to £ 1300 a year, on top of the yearly rent increase. We are a small block of 7 flats, and we are all unhappy with this decision.
Is this legal and can I refuse to agree to the removal of the capping?
Where can I go for help?
I have searched on internet for an answer, but can't find what I need.
Thank you for any advice.

Gaia

snafu21

There probably isn't enough information in your post for an answer but you might:

a) read this:

http://www.guardian.co.uk/money/2009/jan/31/shared-equity-broken-dreams

1) Get all the residents of your block together and form a small association by electing a representative.

2) Ask for an itemised breakdown of the last two years annual service charges and the reason why they should increase by so much.

3), Consider a Leashold Valuation Tribunal (LVT)

http://shelter.dev.squiz.co.uk/mobile/get_advice/renting_and_leasehold/leaseholders_rights/leasehold_valuation_tribunals

4) You may need more advice but an option for your block may be purchasing the freehold and managing service charges yourselves.

http://www.telegraph.co.uk/property/propertyadvice/3343508/Need-to-know-purchasing-freehold.html

If the service charges are £1300 pa for each flat, that's £108.00 per month. You really need to be receiving a lot of service for that much but without further details that's an assumption. You could be living in Mayfair, for instance.

First up, form an association if possible, second; query the service charges, get them itemised and get legal advice. Continue paying service charges in the interim to avoid breaking lease terms.

tbs624

Housing Associations have to consult with tenants & involve them in decisions that will affect them. As Snafu21 says, join or set up a Tenant Committee Association.

If the HA is not being helpful then use their official complaints procedure - they have to have one, so ask them for information on it.

Keep copies of any forms/correspondence. The HA is normally obliged to investigate complaints & make a response within a set time limit. Once you’ve gone though that, if you & other Ts are not happy with the outcome, you can step it up to the Housing Ombudsman Service.

You may find these links helpful - here and here

pinkshoes

The service charge should be set at a limit where it covers all running costs (cleaning, lighting, gardening, management costs, insurance), along with building an excess for future costs of repainting, new roof, other building maintenance etc...

Write to the other 6 tenants and suggest holding a meeting to discuss the situation, and form a committee. You could also invite along the HA who is setting these charges, and ask them for a breakdown of why they want to increase the service charge.

How old is your building, and is it possible it needs some sort of maintenance that was previously overlooked, hence the extra money is required to pay for this?