BBC
Liam Mckinnon tried to sell his property to escape rising service charges
Homeowners tied to maintenance contracts said they felt “trapped” by rising fees and poor service.
Residents of some newly built housing developments across the West have said service fees – the bill for maintaining common areas – set by property management company FirstPort have increased.
They told the BBC they were receiving poor service because the company failed to carry out basic administrative and maintenance tasks like weeding and mowing the grass and questioned accusations such as “insurance against terrorism”. More than 30 MPs have signed a letter to FirstPort calling for answers.
FirstPort said it had conducted “an extensive review” over the past year to improve customer communication, transparency and value for money.
On Thursday, the government announced that the rental system in England and Wales would be overhauled by the end of the current parliament.
Service charges for Liam Mckinnon's rented apartment in Bristol, managed by FirstPort, have tripled over five years to around £1,500 a year.
A lease is where property owners do not own the land their property is built on, but lease it from a landlord for a term of up to 999 years.
They are sometimes subject to a service charge for maintaining the building.
The 35-year-old said he had “no choice” but to sell his two-bedroom apartment because the charges were becoming unaffordable and he wanted to end relations with the management company in due to poor service.
Mr Mckinnon pays almost £1,500 in service charges for his two-bed flat
“It makes me feel helpless. Even if I challenge the costs it's not going to change, they have no responsibility because they can just keep increasing the fees,” Mr Mckinnon said.
“And despite the increase in fees, you receive almost no service.
“You get charged for cutting grass, and then you go out and there are weeds everywhere.”
FirstPort said they only implement service charge increases when necessary and ensuring areas are safe and well-maintained is a priority.
They said the daily operating costs of a development are subject to inflation.
Mr Mckinnon said: “All residents accept that if you need something from FirstPort you will either not get it or you will have a massive battle on your hands.”
After listing his apartment for sale, he said he received and accepted an offer, but months into the process, the buyer withdrew because FirstPort failed to provide a valid fire risk assessment on the property.
Mr Mckinnon was prevented from selling his property
“My relationship suffered”
“There's a long line of people in the chain – lawyers, buyers and subsequent buyers all waiting for this one company to provide you – what you're paying them to do – and they just wouldn't do it,” he said. Mr. McKinnon said. .
“I became an irritable and angry person because it was all-consuming.
“It affected my life in so many ways, my relationship suffered and I wasn't showing up to work because I was trying to resolve all these issues.
“Meanwhile, you pay a lot of money for the privilege.”
FirstPort said it had reissued a valid fire risk assessment.
The BBC also spoke to landowners on new build estates – who own the house and the land it sits on – but are bound by private maintenance contracts for the upkeep of communal areas .
This often happens when a local council decides not to adopt the new area, leaving the responsibility to the builder – or more likely to a third party management company such as FirstPort.
Richard and Katherine Phillips pay more than £450 a year in service fees
Retired couple Richard and Katherine Phillips live in a freehold house in Wells, Somerset, and pay more than £450 a year in service charges to maintain the FirstPort-run estate.
They said they received “almost no service” despite the price increase.
“You feel like you're trapped, you own the land, you own the house, but you're forced to pay hundreds of dollars a year to a company that won't tell you what they actually done,” Ms. Phillips said.
One of the service fees is 'grounds maintenance', for which the estate pays thousands of pounds each year.
“Yet the place seems run down and messy and getting worse every year, while FirstPort continues to raise its rates,” she added.
Mr and Mrs Phillips said the estate appeared untidy despite paying maintenance fees.
The detailed invoices include other charges that the couple say they have difficulty understanding, such as “terrorism insurance” and “contribution to reserves”.
“You try to phone them to find out what they are doing… but you never get an answer,” Ms Phillips said.
“We feel like we’re being robbed.”
A FirstPort Group spokesperson said: “To improve cost transparency, we have launched a new online customer portal where customers can view their invoices, submit repair requests and receive essential updates. »
The couple said they recently learned from the Land Registry that their name was not on the title deeds for the property because FirstPort had not provided the correct information.
“You just don’t know how much rates are going to go up next year,” Mr. Phillips said.
“It’s a feeling of uncertainty, you have to know what your expenses are, to be able to control them, but you can’t control them.”
Julie Campbell said service charges for her freehold home are 'scary'
Julie Campbell lives in a freehold house in Dursley, Gloucestershire, and pays more than £500 a year in service charges.
There is a mixture of rental apartments and freehold houses on the estate.
She said roads and sidewalks are the council's responsibility and there are some green spaces – grass beds, trees and small parks – which should be maintained by FirstPort – but which often appear neglected.
“All the work is promised but nothing happens,” she said.
“Here I pay an exorbitant amount of money for nothing, we just get robbed every year.”
Ms Campbell said parts of the estate are not maintained
Ms Campbell said that as well as paying council tax, the rise in service charges is “scary” as she is retired with a small pension.
“It’s intimidating, it’s a threat to your basic safety, your financial security and your sense of well-being.”
More than 30 MPs have written to the chief executive of FirstPort.
In the letter it says: “We are deeply concerned by what we have heard.
“We would like you to come to Parliament and meet with us to explain the conduct of your business and what you plan to do to address the constant complaints we receive about you from our constituents.”
In a statement, a FirstPort Group spokesperson said: “As the UK's largest property management company, we take our responsibilities very seriously and work hard to meet the needs and expectations of residents.
“If we do not meet these expectations, we will address our concerns and correct any errors as quickly as possible.”
