Property Ombudsman sees spike in leasehold complaints

The Property Ombudsman received a 67% increase in complaints about residential leasehold, mainly concerning service charges.

The Property Ombudsman received more than 6,000 enquiries related to leasehold and investigated 1,313 cases in 2024.

The professional body has now launched a guide with the First-tier Tribunal (Property Chamber) to support leaseholders with service charge disputes and health and safety concerns.

Residential leasehold management has become a growing part of our casework

According to The Property Ombudsman, there are over 4.8 million leasehold properties.

Last year, a total of £148,172 was awarded to consumers for disputes related to leasehold, block, and estate management.

Interim Ombudsman, Lesley Horton, explains that The Property Ombudsman can’t intervene in certain areas.

She said: “Residential leasehold management has become a growing part of our casework with tenants and landlords uncertain around their rights. They are not helped by a complex landscape for redress with many taking expensive and stressful legal action to resolve disputes.

“We can consider and investigate complaints about the conduct of a business but we don’t have powers to set or challenge service charges which cover a building’s operating costs such as insurance, maintenance and repairs of external or communal areas.”

New guide by the Property Ombudsman and First-tier Tribunal

The Property Ombudsman, alongside the First-tier Tribunal (Property Chamber), has launched a guide to help leaseholders resolve disputes.

Ms Horton explains: “Working with judges at the First-tier Tribunal, our guide is designed to help consumers navigate the various options available to them while the Government considers further regulation of the sector.”

Ms Horton says a property redress scheme can help resolve disputes.

She explains: “Tenants and landlords may have their complaint considered by a property redress scheme where a business has not followed best practice. For example, a tenant alerts their managing agent about a leak in the property, but this never gets communicated to the landlord, so the problem worsens.

“Certain complaints must be taken to the First-tier Tribunal, such as service charges, the appointment of a new manager or lease variations. The tribunal is independent of government and consumers may need to pay a fee to have their case reviewed.”

The full guide can be viewed here