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Local authority leaseholders could be protected against having to pay out large sums of money for repairs and maintenance on blocks of flats that councils carry out using government funding.
A consultation has taken place on proposals to update Directions on leasehold caps, with two limits being recommended: £15,000 for homes in London and £10,000 for homes outside of London. This takes into account higher prices in the capital, and that the nature of the stock, with many homes in tower blocks, makes work more expensive.
Eric Pickles, Secretary of State for Communities and Local Government said: “Ministers are well aware of the profound effect high charges for major works can have on leaseholders. Of course, leaseholders must pay their fair share of costs to maintain their homes, and they should pay as required under the terms of their lease but I, and the Minister for Housing, do want to limit any excessive claims on these owner occupiers.”
Currently Directions cap leaseholder charges to £10,000 only for specific, named government funded work programmes.