Homeowners on new-build estates in the West of England have criticised property management company FirstPort for raising service charges to cover the upkeep of communal areas while delivering a poor quality of service. Complaints have included FirstPort neglecting basic maintenance such as weeding and mowing grass as well as including questionable charges, such as “terrorism insurance”. Over 30 MPs have signed a letter to the company asking for answers. The company argued it only raised charges where necessary and that customer communication had improved since a review last year.
Many homeowners feel trapped by their contracts, which are difficult to leave. Leaseholds, where owners lease land for up to 999 years, are subject to fees for building upkeep, while freeholders with contracts for communal areas are also tied in. Retired couple Richard and Katherine Phillips, who own a freehold house in Wells, Somerset, and pay more than £450 in annual service charges to FirstPort, argued they received “next to no service” for their money: “It feels like you are trapped, you own the land, you own the house, but you are locked in to paying out hundreds a year to a company which won’t tell you what they actually do”. The couple also criticised charges including “terrorism insurance” and “contribution to reserves”.
Liam McKinnon, owner of a leasehold flat in Bristol, believed he had “no other option” but to sell his two-bed flat. The cost of his bills had tripled over five years to approximately £1,500 p.a. and he had experienced poor service from FirstPort, which negatively impacted negotiations with prospective buyers: “It affected my life in so many ways, my relationship suffered and I wasn’t present at work because I was trying to field all of these problems… All the while, you are paying out lots of money for the privilege”.
A recent announcement from the UK government stated that the leasehold system in England and Wales would be overhauled
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