星空传媒

I was saddened to see the story "Beware: partnering can make you break the law" (16 May, page 8). This should not have been news either to the government or to social landlords.

Several of us have been drawing attention to the problem for some while (6 July 2000, page 13). This has been a deplorable example of government failing to achieve its stated intention to be "joined-up".

It is true that new statutory regulations should address these difficulties. However, it is proposed that detailed consultation with leaseholders will still be required, both whenever a contract that will last for more than 12 months is proposed and whenever there is to be significant expenditure under that contract that will affect service charges.

This will not be limited to contracts for works but would include those for grounds or lift maintenance and so on.

Other changes to the law regulating variable service charges are due to be introduced later this year.

For some social landlords, their impact may be considerable. One prime example is the forthcoming requirement to produce a statutory form of audited annual service charge account to each tenant/leaseholder within six months of the year end, regardless of request. Failure to comply will give the tenant/leaseholder a right to withhold payment.

Another self-hammered nail in the coffin of good cashflow?