‘We are being robbed’: Homeowners feel trapped by rising fees

Homeowners locked in to maintenance contracts have said they feel “trapped” by rising fees and poor service.

Residents of some new-build estates across the West said service charges – the bill for the upkeep of communal areas – set by property management company FirstPort have surged.

They told the BBC they are receiving a poor service as the company fails to perform basic maintenance and administrative duties like weeding and grass cutting and have questioned charges such as “terrorism insurance.” More than 30 MPs have signed a letter to FirstPort calling for answers.

FirstPort said they have conducted “a thorough review” over the past year to improve customer communication, transparency and value for money.

On Thursday, the government announced the leasehold system in England and Wales will be overhauled by the end of the current Parliament.

The service charges for Liam Mckinnon’s leasehold flat in Bristol, managed by FirstPort, have tripled over five years to about £1,500 annually.

A leasehold is where homeowners do not own the land their property is built on but instead lease it from a landlord for as many as 999 years.

They are sometimes subject to service charges for the upkeep of the building.

The 35-year-old said he had “no other option” but to sell his two-bed flat because the charges were becoming unaffordable and he wanted to end dealings with the management company due to poor service.

“It makes me feel helpless, no matter how much I challenge the costs, it’s not going to change, there’s no accountability for them because they can just keep putting up the charges,” said Mr Mckinnon.

“And despite the fees going up, you receive next to no service.

“You’re being charged for the grass being cut and then you step outside and there are weeds all over the place.”

FirstPort said they only apply service charge increases where necessary and ensuring areas are safe and well-maintained is a priority.

They said the day-to-day running costs of a development are subject to inflation.

Mr Mckinnon said: “There is an acceptance among all residents, that if you need something from FirstPort, you’re either not going to get it, or have a massive battle on your hands.”

After putting his flat up for sale, he said he received and accepted an offer, but months into the process, the buyer pulled out because FirstPort had not provided a valid fire risk assessment on the property.

“You have this long line of people in the chain – solicitors, buyers and onward purchase that are all waiting for this one company to provide – what you are paying them to provide – and they just wouldn’t do it,” 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 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.”

FirstPort said they have now re-issued a valid fire risk assessment.

The BBC also spoke to freeholders on new-build estates – who own the house and the land it sits on – but are tied into private maintenance contracts for the upkeep of communal areas.

It often happens when a local council decides not to adopt the new area, leaving the builder – or more likely a third party management company such as FirstPort – with responsibility.

Retired couple Richard and Katherine Phillips live in a freehold house in Wells, Somerset, and pay more than £450 annually in service charges for the upkeep of the estate managed by FirstPort.

They said they receive “next to no service” despite rising charges.

“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,” Mrs Phillips said.

One of the service charges is “grounds maintenance” which the estate pays thousands of pounds for every year.

“Yet the place looks scruffy and untidy and gets worse year after year, all while FirstPort keep putting their charges up,” she added.

On itemised bills, there are other charges the couple said they struggle to understand such as “terrorism insurance” and “contribution to reserves”.

“You try and phone them up to find out what they do… but you can’t ever get an answer,” said Mrs Phillips.

“We feel as though we are being robbed.”

A spokesperson for The FirstPort Group said: “To enhance cost transparency, we have launched a new online customer portal where customers can view bills, submit repair requests and receive essential updates.”

The couple said they recently learned from the Land Registry that their name is not on the title deeds for the property because FirstPort has not provided the correct information.

“You just don’t know how much the charges will go up next year,” said Mr Phillips.

“It’s a feeling of uncertainty, you should know what your expenditure is, so you can control it, but you can’t control them.”

Julie Campbell lives in a freehold house in Dursley, Gloucestershire, and pays more than £500 a year in service charges.

There are a mixture of leasehold flats and freehold houses on the estate.

She said the roads and pavements are the responsibility of the council and there is some green space – beds of grass, trees and small parks – which should be maintained by FirstPort – but often look neglected.

“All the work is promised but nothing happens,” she said.

“Here I am paying an exorbitant sum of money for nothing really, we are just being robbed on annual basis.”

Mrs Campbell said in addition to paying council tax, the rising service charges are “frightening” as she is retired with a small pension.

“It’s intimidating, it’s a threat to your basic security, your financial security and your sense of wellbeing.”

More than 30 MPs wrote to the managing director of FirstPort.

In the letter it said: “We are deeply concerned by what we have heard.

“We would like you come to parliament and meet with us to explain your company’s conduct and what you intend to do to address the consistent complaints we receive about you from our constituents.”

In a statement, a spokesperson for The FirstPort Group said: “As the largest property management company in the UK, we take our responsibilities very seriously, and we work hard to meet the needs and expectations of residents.

“If we do fall short of these expectations, we will address concerns and rectify any mistakes as soon as possible.”