The government is committed to reforming retirement property charges known as event fees, thanks to the work of the Older People’s Housing Taskforce.
Housing Minister, Rachel Maclean, speaking at the recent ARCO Conference, said it was a priority to protect older people from hidden fees and introduce mandatory disclosure of charges.
She said: “While some time has passed since the government accepted the majority of the Law Commission’s recommendations on reforming these fees, we haven’t been idle in supporting leaseholders… We [remain] firmly committed to reforming event fees as a priority.”
These reforms were first proposed by the Law Commission following a review in 2017. The government accepted the recommendations in 2019 but has done nothing since.
Event fees contribute to the cost of things like maintaining communal facilities and are typically charged by retirement housing operators to homeowners when their properties are sold on.
Ms Maclean’s comments, made at the ARCO Conference for later living developers, were well received by operators, who said reforms would increase consumer confidence and support the growth of retirement communities.
Professor Julienne Meyer, chair of the Older People’s Housing Taskforce set up by government in April, said at the conference: “We recommend that the government implements measures to protect consumers from hidden event fees as soon as possible.”
Michael Voges, chief executive of Arco, said: “Retirement housing horror stories about hidden event fees inevitably deter families from looking at the options available, and have resulted in many thousands of older people in late old age experiencing unnecessary loneliness, ill health and loss of independence.
“It’s fantastic that the Older People’s Housing Taskforce is already having an impact, and the government has committed to closing the gap in regulation that enables hidden event fees in retirement housing.”