Flat owners are facing a service charge tipping point that could render their homes unsellable and unmortgageable.

In recent years, service charges have risen sharply while the price of flats has fallen. 

Now, mortgage brokers say they are seeing increasing numbers of people having their mortgage applications rejected due to this disconnect. 

Some banks have tightened their rules and now won’t offer mortgages on flats where the annual service charge exceeds 1 per cent of the property’s value. 

This is because a high service charge could have an impact on how easily a lender could sell the property were it to be repossessed. 

In 2025, some 37 per cent of flats had an annual service charge exceeding 1 per cent, according to property firm Hamptons, up from 28 per cent a decade earlier. 

It means a mortgage application on a flat valued at £300,000 with an annual service charge of £4,000 could be refused by some lenders.

While some lenders may refuse the mortgage outright, many will make a call based on the opinion of their surveyor or valuer. 

William Coe of mortgage broker Cleerly says: ‘We are seeing an increase in mortgage applications stalling or failing purely due to spiralling service charges.

‘When a flat’s service charge approaches or hits that 1 per cent mark, many mainstream lenders will indeed defer to the surveyor. 

‘If the surveyor decides the fee is onerous or completely out of step with the local market, the property is flagged as unsuitable security, and the mortgage is declined flat out.’

Rising service charges and falling flat prices

Rising service charges combined with falling or flatlining values is a dangerous combination. 

Across England and Wales, flat values have risen 16 per cent on average over the last 10 years, according to Land Registry data. But in London, where flats make up more than half of the housing stock, the average price of a flat hasn’t moved in the last decade.

William Coe of mortgage broker Cleerly

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Meanwhile, the average service charge has risen 55.6 per cent over the last decade, according to Hamptons. 

This is Money readers have reported hikes of 50 per cent or more within the last five years alone.

The average leaseholder’s service charge bill now ranges from £1,525 a year for the cheapest 10 per cent of buildings to £8,680 for the top 10 per cent, according to the latest research by the Property Institute.

Last year, the average flat had an annual service charge equal to 0.9 per cent of its value, according to Hamptons – perilously close to the 1 per cent that some lenders are using as their line in the sand. 

Mortgage broker Aaron Strutt of Trinity Financial says: ‘If we have not already hit the tipping point then we are pretty close. 

‘People are worried about buying flats at the moment because of the fees and ongoing unknown costs.’

Recent analysis for This is Money by analytics firm PropertyData found some areas where service charges are way out of kilter with flat prices.

In the BD1 postcode in Bradford city centre, service charges averaged £2,023 while the average asking price for these properties was £68,050. It means the typical service charge equates to 3.13 per cent of the asking price.

The same could be seen in L2, in Liverpool’s city centre. Service charges there were £2,910 per year when the average asking price was £122,374. That means the service charge is 2.58 per cent of the asking price.

Valuations a ‘frequent hurdle’ 

When buying with a mortgage, the lender will always commission an independent valuation of the property.

Many buyers will view it as a formality, but just as a lender can decide not to lend to a certain individual, so too can it decide not to lend on a particular property.

The valuer or surveyor may also value the property at less than the sales price agreed, which means the buyer cannot proceed unless they cover the shortfall.

At a time when flat prices are falling in many areas, valuers are becoming nervous about flats because they can ultimately be sued by lenders if they get it badly wrong. 

Coe says: ‘We have seen a noticeable uptick in surveyors down-valuing flats against the agreed purchase price compared to this time last year.

‘Where we used to see occasional pushback, it is now a frequent hurdle with surveyors regularly cutting valuations by between 5 and 10 per cent of the agreed purchase price.’

Not all lenders have a hard cap 

If a flat does have a service charge of 1 per cent or more, the lender will need to make a call on whether to hand the buyer a mortgage. 

For some it will be a simple decision, as certain lenders have explicit, hard caps written into their lending criteria.

Lender Gen H states annual service charges must not exceed 1 per cent of the property’s purchase price or valuation, while others like MPowered Mortgages cap the combined service charge and ground rent at 1.5 per cent.

High Street lenders can be more flexible in some instances. 

Steph Lyke, partner at SAS Daniels

Coe says: ‘Lenders like Santander or Barclays don’t necessarily apply a blunt percentage cap (like 1 per cent) to the property value. 

‘Instead, they treat the service charge strictly as a monthly financial commitment—exactly like a student loan or car finance.’ 

The reason the charge is so high will often be investigated. 

Steph Lyke, a partner in the residential property team at law firm SAS Daniels, says: ‘The breakdown of the service charges will need to be investigated, it could well be that the costs relate to a one off major works project, which generally the valuer would accept this as it is an indication of good property management. 

‘If the costs are unproportionate and due to poor management, or includes high management fees, then the lender will likely decline.’

Lenders may also instruct the surveyor to assess the service charge against the local market.

For example, a £4,000 annual service charge on a £300,000 flat which is 1.3 per cent of the home’s value might be rejected in a regional town where standard fees are £1,200. 

However, that same fee might be passed by a surveyor in London or Cambridge if the block includes a concierge, lifts, and complex building systems, as it reflects the ‘market norm’ for the area. 

Why lenders are wary of rising service charges

Lenders like certainty. A monthly loan or credit card repayment is a fixed, known commitment over a set period, making it straightforward to model in an affordability calculator.

The inherent danger with service charges is the total lack of control over future costs. 

Cleery’s Coe says: ‘A managing agent or freeholder can hike fees dramatically with very little recourse for the leaseholder.

‘For a lender’s risk committee, that word ‘could’ is a major red flag. 

‘If a bank has to take back a property, their primary objective is to recover their funds quickly through a swift resale. If the service charge has spiralled to a point where the next buyer cannot secure a mortgage on it, the property becomes illiquid.’

Rising service charges are also in some cases restricting how much buyers are able to borrow.

This is because they must be factored in to the borrower’s monthly outgoings when assessing affordability.  

Coe says: ‘Over the last two years, building insurance premiums, maintenance costs, and cladding-related expenses have driven service charges up significantly and it is no longer unusual to see modest two-bedroom flats with fees exceeding £3,500 per annum. 

‘When this is plugged into a lender’s affordability calculator, it eats into the applicant’s maximum borrowing capacity, turning a previously viable mortgage offer into a decline.

The ‘sudden and unexpected’ death of Jurassic Park star Sam Neill has been attributed to pneumonia – the lung disease that kills some 25,000 people in Britain every year.

The passing of the 78-year-old may come as somewhat of a surprise to fans, given that he announced his remission from blood cancer in April and was ‘cancer-free’ when he died, according to his agent.

But Neill is not the first noteworthy figure to fall victim to pneumonia over the past few years. 

It was named on the death certificate of both Val Kilmer and Diane Keaton last year, who died aged 65 and 79, respectively.

And in December, Ibiza-based lothario Wayne Lineker, 63 – brother of football pundit Gary – revealed that he too almost became a casualty of the disabling respiratory condition. He told fans that he had been hospitalised after a virus he picked up in Dubai left him fighting for his life in hospital, adding that his recovery could take months. 

Now, experts have told the Daily Mail that the condition is not just an affliction of the elderly; it was once coined the ‘old man’s friend’ in reference to the peaceful and painless death it offered.

In fact, many sufferers may have very few symptoms, meaning it goes undetected and untreated, potentially causing long-term lung damage.

Here, doctors reveal the need-to-know warning signs of the condition and whether you could be vulnerable. 

Diane Keaton, whose acting career spanned more than five decades, died from bacterial pneumonia at the age of 79 last October

According to Professor Paul Hunter, a virus expert at the University of East Anglia, pneumonia is an infection ‘in the deep part of the lungs where oxygen and carbon dioxide transfer between your blood and the atmosphere’.  

There are two main types: viral pneumonia and bacterial pneumonia.

Viral pneumonia – caused by viruses such as influenza, respiratory syncytial virus (RSV) and Covid – is generally milder, although it can sometimes be severe.  

Meanwhile, bacterial pneumonia – when bacteria enter and infect the lungs – is often more serious and may require treatment.

Untreated bacterial infections like pneumococcal pneumonia ‘can have quite a high mortality rate’, Professor Hunter said.

In rarer cases, pneumonia can develop after food, drink or vomit enters the lungs instead of air. This is known as aspiration pneumonia. 

More people die from pneumonia in Britain than anywhere else in Europe, according to lung charity Asthma and Lung UK.

Meanwhile in the US there are around 42,000 deaths per year.

Those with weakened immune systems, such as patients undergoing cancer treatment, elderly people or babies, are more vulnerable to pneumonia, Professor Hunter says.

Not only are they more likely to contract an infection that triggers the condition, their body may struggle to stop it progressing and reaching the lungs.

However, pneumonia can affect anyone – and can be life-threatening at any age.

It is the leading cause of death among children under five, killing more than 700,000 children per year.

‘People can get pneumonia throughout their life. It’s more lethal at the extremes of age in the very young and the very old,’ he said.

‘Globally, deaths from chest infections, most of which are pneumonia, are one of the more common causes of deaths in children, and most of those are in low income countries.

‘But you can get pneumonia throughout life and you can actually die from it throughout life.’

Perhaps the most difficult-to-spot type of the disease is so-called silent pneumonia, sometimes called ‘walking’ pneumonia due to its low impact on patients’ daily lives. 

In other words, those with the condition can go to work, do exercise and generally go about their daily lives while experiencing little more than a mild cough.

But experts say if a cough or cold symptoms have continued for more than three weeks it’s important to seek medical help. 

While most healthy people will eventually clear silent pneumonia without treatment, those with respiratory conditions like asthma may struggle – and the longer the lung inflammation persists, the higher the risk of long-term damage.

Many with ‘walking’ pneumonia may also still be harbouring a contagious infection which can be easily passed on to vulnerable friends and family.

If a GP suspects pneumonia they may offer antibiotics or refer patients for scans of the lungs to confirm the diagnosis and assess potential damage. 

For more obvious cases, symptoms include a cough that produces mucus, shortness of breath, a high temperature, chest pain and body aches. 

Fatigue, loss of appetite and wheezing are also common.

Babies suffering the condition will make grunting noises when breathing, experts advise. Elderly people, meanwhile, may also become confused. 

Val Kilmer died from pneumonia aged 65 last April having previously suffered throat cancer

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Professor Hunter said the main symptoms to watch out for are ‘coughing and breathlessness’. 

It is possible to check if you’re likely to be suffering the illness by testing your blood oxygen levels, he adds – this indicates how efficiently oxygen is travelling from your lungs to your bloodstream. 

This is done using a tool called a pulse oximeter – a device which, when clipped to the end of a finger, shines light through the skin to measure oxygen in the blood.

Professor Hunter advises that these are available to buy from many high street pharmacies, and were made popular during the Covid lockdowns with thousands investing in them for peace of mind. 

Readings of around 92 per cent or lower should prompt people to seek medical attention, he warned.

Fortunately most people who develop pneumonia will not become seriously ill. And of those who do end up hospitalised, roughly 15 per cent die within a month of admission.

This figure rises to around 30 per cent if a patient is admitted to the intensive care unit.

People treated in hospital are usually given antibiotics, fluids and sometimes steroids to help fight the infection, as well as oxygen if they are struggling to breathe.

Professor Hunter says there are highly effective ways to protect yourself from pneumonia – for example, by staying up to date with pneumococcal, flu, RSV and Covid vaccines.

Stopping smoking can also dramatically reduce the risk.

Just 25 per cent of adults in the US have received the pneumococcal vaccine, while almost three quarters of Britons over 65 have taken the jab. 

“The future of aesthetics is about smarter treatments, not more aggressive ones. That’s why I introduced RedTouch Pro into my clinic. I’d been waiting for a technology that doesn’t just treat the visible signs of ageing but also addresses the biological cause. It encourages the skin to produce new, high-quality collagen, rather than simply resurfacing the skin.”

A 39-year-old man has been charged with assisting Iran’s intelligence service.

Vahid Aberi, of Liverpool, was arrested in Birmingham on Wednesday following an investigation by Counter Terrorism Policing.

Aberi was taken to a police station in West Midlands with detectives later carrying out searches at properties in Birmingham and Liverpool as part of their investigation.

He has since been charged with assisting a foreign intelligence service under the National Security Act 2023 and is due to appear at Westminster Magistrates’ Court later.

Commander Helen Flanagan, Head of Counter Terrorism Policing London, said: “We have seen a significant and sustained increase in the tempo of our work in national security investigations in recent years.

“This case is yet another example of where we’ve intervened to disrupt suspected activity linked to foreign intelligence services.

“While we can’t comment in detail around the allegations now that a man has been charged, I do want to reassure the public that we have not identified any direct threat to them nor any threat towards a community or individual in connection with this investigation.”

China’s best-selling car is officially coming to the UK in a matter of weeks – but Britons will have to pay a lot more for one than Chinese drivers do.

Geely’s electric EX2 – called the Galaxy Xingyuan in its home market – was China’s most popular new model in 2025.

The brand – which set up in the UK only last year and already sells the electric EX5 and Starray EM-i plug-in hybrid SUVs – shifted 465,775 examples in its home market last year.

To put that number into perspective, that’s almost a quarter of all car registrations in the UK in 2025 and more than eight times the number of units sold by Britain’s most popular model, the Ford Puma (55,488 registrations).

So, what’s making it such a hit in China? One of the main reasons is price; the electric supermini costs just £7,000 new.

How is it so cheap? Partly due to supply chain control, with every component produced in China, cutting out any middleman premiums. But it is also thanks to government subsidies and a fierce price war between brands.

It’s the case for all models sold in both China and the UK: the BYD Dolphin, for instance, starts from £30,230 in our showrooms but in its domestic market rings in from ¥99,800 – just £11,000. 

The bad news for drivers in Britain is that the EX2 won’t have the same bargain-basement price tag it has at home – and that could be a major stumbling block. 

Starting at £20,990, it’s competing with seriously strong competition backed by years of heritage in Britain – think the Renault 5 E-Tech, Citroen e-C3 and Peugeot e-208.

It too is a massive £9,000 more expensive than the cheapest electric car sold in Britain, the Dacia Spring, which is likely to limit its showroom appeal.

The car maker says the ‘modern compact all-electric’ EX2 is ‘designed to make advanced electric mobility more attainable for UK customers’.

It’s likely to be among the roomiest electric superminis on the market, much larger than a Fiat Grande Panda or VW ID.Polo.

But its £21,000 price tag won’t get you very far… literally.

The entry-level version is the Pro model, with a relatively puny 35kWh battery and an 81bhp electric motor sending power to the rear wheels.

Based on official tests, Geely reckons it will be capable of 155 miles between charges – though in the real world, that figure is likely to be somewhat lower.

To put that into perspective, the cheapest Renault 5 currently costs £21,495, inclusive of the Government’s lower tier Electric Car Grant (ECG) of £1,500.

Yet the funky French hatchback has a 40kWh battery and a claimed range of 190 miles, easily gazumping the Geely for an extra £500 up front.

Thankfully, the EX2’s mid-spec Max and Ultra trim levels have the larger 47kWh battery linked to a 114bhp e-motor, returning a claimed 214 miles on a full charge – a distance most buyers shopping in this segment should find acceptable.

Yet with prices of £23,490 and £25,490 respectively, this is no match for the range-topping Renault, which for £23,945 (inclusive of the upper tier £3,750 ECG) has a 52kWh battery pack and can travel 252 miles between charges.

All variants of the EX2 feature DC rapid charging at up to 80kW and a 6.6kW onboard charger. Using a public fast charger, owners can replenish the battery from a 30 per cent state of charge to 80 per cent in around 25 minutes.

Starting at £20,990 in the UK, it is £9,000 more expensive than the cheapest electric car in the UK, the Dacia Spring and three times what it costs in China

The EX2 will be one of the roomiest small electric hatchbacks on the market, much larger than a VW ID.Polo or a Renault 5 E-Tech

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While the EX2 won’t set any pulses racing with its performance and range, it is brimming with gadgets and equipment.

Even the entry model features a 14.6-inch touchscreen infotainment system, a secondary 8.8-inch digital driver’s display, Apple CarPlay and Android Auto, keyless entry and start, and LED headlights.

The safety kit is pretty comprehensive too; adaptive cruise control, autonomous emergency braking, lane-keeping assist, blind-spot detection, rear cross-traffic alert and a driver monitoring system are all standard equipment.

Oddly, the mid-spec Max trim includes no additional features, only the larger battery pack and more potent electric motor.

As is the case with most Chinese brands, the Geely EX2 will be very well equipped, featuring a mass of big car safety and luxury features as standard

For the top-spec model – which costs £25,490 – the only optional extra is this white interior finish, which costs just £200 more

Geely is another of a dozen Chinese newcomers to arrive in the UK. It launched late last year with the Starray EM-i plug-in hybrid SUV (middle) before the arrival of the electric EX5 (right) in 2026. The EX2 takes the range to three cars across two segments

The range-topping Ultra adds two-tone paint, a power tailgate and a 360-degree parking camera.

It also comes with a few luxuries usually reserved for larger premium cars, including ambient lighting, heated seats, a heated steering wheel and an upgraded sound system.

It seems the only optional extra customers can choose is a white interior, which comes at a £200 premium – much less than you’d typically pay for a different cabin colour elsewhere.

Michael Yang, general manager at Geely Auto UK, says the EX2’s arrival ‘represents an important step in our mission to make intelligent electric mobility accessible to more customers across the UK’.

The big question is: how comfortable will British car buyers feel about paying £21,000 for a new car that costs a third as much in another market? Time will tell when it hits UK showrooms next month.

Daily Mail and This is Money will be driving one in August to find out if it can compete with established EV rivals around its UK price point.

Marwan Jumaa had been receiving medical care at North Manchester Hospital when he absconded.

Wanted appeals were put out across Wednesday and Thursday. Following extensive enquiries, he was arrested by Lancashire Constabulary.

Detective Superintendent Nicola McCulloch of GMP’s Serious Crime Division said:

“This has been a fast-paced investigation which has involved a significant number of officers and resources from Greater Manchester Police.

“An observant Lancashire Constabulary officer recognised Jumaa and acted swiftly to arrest him.

“He will now be returned to a secure hospital facility.

“I would like to thank the public for their support following our appeal.

“Our call handlers received a considerable amount of information from members of the public and that assistance has been invaluable in helping us locate Jumaa.

“We are extremely grateful for the support shown throughout this investigation.”

(Image: GMP)

GMP had appealed to the public for help tracing Jumaa, a 20-year-old serving a custodial sentence for assault.

He was described as having links to Bury, Prestwich, Crumpsall, Leeds, and London.

The public had been warned not to approach Jumaa during the appeal, and had been asked to contact police with any sightings or information regarding his whereabouts.

In The Mixer’s World Cup special

Everything you need to know about the World Cup – England updates, the games to watch and stories you missed – in five minutes, at 1pm, every day.

Mirror Political Correspondent Sophie Huskisson here…

While Andy Burnham is expected to become Labour leader today, he won’t become PM until Monday. We’re likely not going to find out who is in his Cabinet until after he enters Downing Street – which means more days, hours and minutes of speculation over who is in his top team.

The role most spoken about is the Chancellor: Who will replace Rachel Reeves in the Treasury?