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Owners of high-rise blocks are being warned by the government to keep leaseholder service charges “reasonable” amid concerns of “unacceptably high” fees for new building safety reports.
Housing minister Lee Rowley and Philip White, head of the Building Safety Regulator (BSR), have written an open letter to building mangers over concerns raised about the new regime.
Under the new system, anyone responsible for a block of 18 metres or taller must submit a “safety case report” to the BSR.
The reports are meant to stop “building safety failures” that could result in “serious loss of life”.
However, the joint letter states: “In recent months, we have been made aware of concerns regarding both the cost and type of documentation which is needed to create a safety case.
“We have also been made aware of unacceptably high charges being quoted and charged for services related to the production of safety case reports.”
Around 12,000 buildings have been registered with the BSR in the past six months, according to the letter.
It comes as thousands of leaseholders are already facing high remediation costs as owners look to recoup money from fixing defective buildings post-Grenfell.
Mr Rowley and Mr White said that some owners are “incorrectly” suggesting that new investigations need to be commissioned, instead of using existing ones. “It would be extremely unusual to have none of this information to hand already,” they said in the letter.
Under the government’s own guidelines, landlords are allowed to pass on the cost of complying with new building measures to leaseholders through their service charge.
However, the letter reminded building managers that legally, service charges must be “reasonable” and leaseholders must “understand what they are being charged for and why”.
Firms providing the safety checks must also describe the works “in a way that means residents can make easy comparison of like-for-like activity when presented with multiple quotations”, Mr Rowley and Mr White said.
The letter concluded: “We will continue to monitor very closely the actions of those within this sector and, should we see evidence of inappropriate behaviour, will not hesitate to call it out publicly in the future.”
Last September, it emerged that that the BSR would charge a building owner £144 an hour when a building safety case is called in for review.
The BSR has said it is aiming to have checked 40% of “higher-risk” blocks by April 2026.
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