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LTF
response to the Office of the Deputy Prime Minister's consultation
paper on the separation of service charges from rents.
To
ODPM September 2002
'In
response to the ODPM's consultation paper June 2002 relating to
service charges we would be grateful if you would note our comments
as follows.
- Our greatest
concern is that the proposed separation of service charges from
rents is simply a way of increasing our rents.
- Without
the same limits and caps for service charges that are applied
to rents - for both existing and new services, the very existence
of 'affordable' housing in London is threatened. As a result we
fear that more council tenants will be forced into dependency
on housing benefit and that evictions will increase. Our communities
will be further damaged as those unable to afford to pay are forced
to leave and parts of London will become exclusively for the wealthy.
- Currently
separate service charges do not effect eligibility to housing
benefit. However without guarantees that eligibility to housing
benefit will not be effected by the separation of service charges
from rents, it is difficult to see that the problems itemised
above will not be exacerbated and that our communities will not
be further damaged.
- The government's
intention to bring councils in line with RSLs in relation to service
charges seems to be motivated by tenants' rejection of stock transfer.
We are concerned that the government's overall intention here
is to continue the push to end council housing. We want the future
of council housing to be assured.
- Council stock
is very different from that of RSLs - having larger estates and
older stock which require higher levels of services. There are
no guarantees in the proposals that we will not have to foot the
bill for this.
- Many of our
estates suffer huge problems of anti-social behaviour. As a result
demands for greater security - for CCTV and neighbourhood wardens
have increased. Under ODPM proposals tenants will be financially
penalised for having these problems and for demanding solutions
to them.
- Whilst the
advantage for leaseholders in having itemised service charge bills
is that they can challenge paying for services that they are not
receiving, under these proposals the same rights will not apply
to tenants. There is little benefit in 'increasing financial transparency'
if at the end of the day it will not possible for tenants to make
use of the information provided.'
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