Segregated housing (2)

Meeting: 
MQT on 2014-09-17
Session date: 
September 17, 2014
Reference: 
2014/3160
Question By: 
Darren Johnson
Organisation: 
City Hall Greens
Asked Of: 
The Mayor

Question

Some housing associations and developers provide separate facilities like entrances for market and affordable homes on the grounds that they don't want to hit low income tenants with high service charges. Is there any legal reason why providers couldn't provide discounted service charges to some residents for a single entrance, in effect making the owners of market homes subsidise the low income tenants?

Answer

Answer for Segregated housing (2)

Answer for Segregated housing (2)

Answered By: 
The Mayor

Legislation requires service charges to be reasonable and evidenced and they can only be charged to leaseholders for services that they use - not to cover the costs to other residents. Seeking to pass on service charges in the way the question suggests would be open to legal challenge by leaseholders. At the same time social tenants often cannot be charged the same level of service charges as other leaseholders because housing benefit will not cover many service charges.