Council welcomes leaseholder service charge review

14 October 2024
Body
  • Strategic review of leaseholders charges complete
  • Review delivered by independent external consultants, confirming council policy and processes as fully legally compliant
  • Leaseholders offered a roof repair option with a review for roof renewal in 5-7 years

At Cabinet on 10 October, a new leaseholder roofing repairs programme was agreed following a detailed strategic review of leaseholder service charges.

At full council in August 2023, a full strategic review of leaseholder charges was approved following concerns raised by leaseholders and elected members in relation to some planned roofing renewals.

Independent consultants Campbell Tickell were appointed to carry out the strategic review, and recommended a number of actions, including:

  • Assess the costs for each block and consider what other repairs can be done at the same time 
  • Advise residents of the proposed remedial works programme and likely timescale for roof renewal
  • Review the condition of each roof in five to seven years to consider when replacement is needed
  • Make sure all written communications to leaseholders are clear and customer friendly
  • For some properties, offering an alternative to full roof replacement at this time, with the understanding that full replacement will be needed in approximately 10 years. Depending on the condition of the property, a full roof replacement may be required.

Each property will now be reviewed on an individual basis, to establish if remedial works can take place or essential replacement of the roof is needed now. Impacted residents will be fully advised of remedial works and likely timescale for any roof renewal.

Future surveys will be diarised but will be inspected as part of the councils ongoing stock condition updates.

Councillor Ben Clarke, portfolio holder for housing, homelessness and planning, said: “We realise the council’s original approach caused alarm and worry. We’ve listened to our leaseholders and following their concerns appointed consultants Campbell Tickell, to conduct a detailed strategic review of charges, our procurement policies and processes.

“The review confirms that our procurement processes have been followed correctly, but also highlights some different ways of working around how we share information, what payment options can be offered and alternative options for roof repairs instead of the need for a full replacement at this time. 

“This does not mean that the roof will not need replacing sometime at a later date, but it will offer leaseholders a lower cost repair now with a review in five to seven years to assess when renewal will be required; this allows leaseholders to financially prepare for the impact of paying for major work like a new roof.

“Residents are always at the heart of everything we do, and we welcome the feedback from our consultants to help guide us in taking steps to improve our service.

“We thank our leaseholders for their patience during this full review, and to everyone involved in this project for their work. We are writing to each resident to advise of the report outcomes and the new consultation period.”

Notes:

The full committee report can be seen on the council’s website.

The council own a number of flatted blocks across Tamworth within the housing revenue stock, many of these blocks contain flats that have been sold on a leasehold basis. Under the terms of any lease there is a requirement for the council as the freeholder, to maintain the fabric of the building, and a requirement for the leaseholder to pay service charges to the council to cover the cost of any essential repairs.

Before any works that involve a significant cost to the leaseholder, the council is required to follow a formal process with the leaseholder, as part of a legal procurement approach that meets EU and Public Contract Regulations requirements.