Plaid Cymru housing spokesperson Leanne Wood AM and residents’ representatives have met Welsh Housing Minister Huw Lewis to discuss high service charges imposed at flats in Cardiff Bay and Penarth.
Leanne Wood asked for the meeting after a resident living in the Loudoun Square area complained about being charged £150 by the company through their management charge by Cardiff council’s management company for the replacement of two bricks in a wall.
It was later discovered that people living in private apartment blocks were paying up to £325 A MONTH – £3,900 a year – on top of the costs of running a home such as council tax, gas and electricity bills. Service charges also affect housing association accommodation.
Leanne Wood, who represents South Wales Central, was accompanied at the meeting by Liz Musa, Plaid Butetown campaigner, Alwyn Evans, former secretary of the Penarth Marina & Haven Residents’ Association and Ray Noyes, Century Wharf Residents’ Association Secretary.
Leanne Wood said: “While much of leasehold legislation is a matter for Westminster, there are steps the Welsh Government can take unilaterally to tackle this situation.
“The Rugg report from the Centre for Housing Policy at the University of York showed that rented and leasehold sectors suffered from a lack of regulation of agents and landlords some of whom were increasing rental charges and disregarding health and safety.
“What is needed is the regulation of letting and managing agents because anyone can set up as one at the moment. There are professional associations but there is no compulsion to join and there are only a voluntary codes of conduct. The Welsh Government needs to build on the best of these codes in formulating legislation. All landlords should also be required to register on a national database.”
Leanne Wood added: “I’ve always been made aware that developers often don’t spell out the cost of service charges and consumer legislation needs to be used to ensure promises made by developers on purchase are honoured. They should not be allowed to make a profit from service charges.
“There must be greater consultation in the public sector between the landlords and their tenants and leaseholders. The whole issue of service charges affects not just people in Cardiff or Penarth but across the whole of Wales.”
Alwyn Evans, a former secretary of the Penarth Marina & Haven Residents’ Association, described the meeting as very positive. “Quite clearly the Minister has concerns which we share. This issue affects both the private and public leasehold sector.
“We believe there needs to be much more transparency in terms of service charges. One resident in Loudoun Square is paying £2,400 just for a concierge service – on top of his other costs to live in his own home.
“While in the longer term radical leasehold reform is needed, we want action now such as the regulation of letting agencies and managing agents and registration of landlords.”
