Homeowners Express Distress Over Escalating Property Management Fees

Property owners bound by maintenance agreements have expressed feeling “trapped” due to escalating charges and inadequate service provision. Individuals residing in various new-build developments throughout the West have reported a significant increase in service charges, which cover the maintenance of shared spaces, imposed by the property management firm FirstPort. These residents informed the BBC that the service they receive is substandard, with the company neglecting fundamental maintenance and administrative tasks, including weeding and lawn care. They have also raised concerns about specific charges, such as “terrorism insurance.” In response, over 30 Members of Parliament have co-signed a letter to FirstPort, demanding explanations. FirstPort stated that it has undertaken “a thorough review” during the last year aimed at enhancing customer communication, increasing transparency, and improving value for money. The government declared on Thursday its intention to reform the leasehold system in England and Wales before the conclusion of the current parliamentary term. Liam Mckinnon’s leasehold apartment in Bristol, which is managed by FirstPort, has seen its service charges escalate threefold over a five-year period, reaching approximately £1,500 per year. A leasehold arrangement signifies that property owners do not possess the land upon which their residence stands; instead, they rent it from a landlord for durations potentially extending up to 999 years. Such arrangements often entail service charges for the maintenance of the structure. The 35-year-old individual indicated that he felt he had “no other option” but to sell his two-bedroom apartment, as the associated charges had become prohibitive, and he wished to cease interactions with the management company due to the inadequate service provided. “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,” Mr Mckinnon stated. He added, “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,” he further explained. FirstPort asserted that it implements service charge increases solely when essential, prioritizing the safety and proper upkeep of communal areas. The company also noted that the routine operational expenses of a property development are influenced by inflation. Mr Mckinnon commented: “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.” Following the listing of his flat for sale, he stated that he accepted an offer, but several months into the transaction, the prospective buyer withdrew due to FirstPort’s failure to furnish a valid fire risk assessment for the property. Mr Mckinnon remarked: “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.” He elaborated, “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,” he continued. “All the while, you are paying out lots of money for the privilege,” he concluded. FirstPort confirmed that it has since re-issued a valid fire risk assessment. The BBC also interviewed freeholders in new-build developments—individuals who possess both their house and the land it occupies—but are bound by private maintenance agreements for the upkeep of shared spaces. This situation frequently arises when a local authority opts not to assume responsibility for a new development, thereby assigning the obligation to the builder or, more commonly, to a third-party management firm like FirstPort. Richard and Katherine Phillips, a retired couple residing in a freehold property in Wells, Somerset, incur annual service charges exceeding £450 for the maintenance of their estate, which is managed by FirstPort. They reported receiving “next to no service” despite the increasing charges. Mrs Phillips stated: “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.” Among the service charges is “grounds maintenance,” for which the estate pays thousands of pounds annually. She further commented: “Yet the place looks scruffy and untidy and gets worse year after year, all while FirstPort keep putting their charges up.” The couple also mentioned that their itemized bills include other charges they find difficult to comprehend, such as “terrorism insurance” and “contribution to reserves.” Mrs Phillips explained: “You try and phone them up to find out what they do… but you can’t ever get an answer.” “We feel as though we are being robbed,” she concluded. A spokesperson for The FirstPort Group stated: “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 disclosed that they recently discovered via the Land Registry that their names are absent from the property’s title deeds, attributing this to FirstPort’s failure to supply accurate information. Mr Phillips commented: “You just don’t know how much the charges will go up next year.” “It’s a feeling of uncertainty, you should know what your expenditure is, so you can control it, but you can’t control them,” he added. Julie Campbell, who resides in a freehold house in Dursley, Gloucestershire, pays over £500 annually in service charges. The estate comprises both leasehold flats and freehold houses. She noted that while the council is responsible for the roads and pavements, certain green spaces—such as grass beds, trees, and small parks—which FirstPort is supposed to maintain, frequently appear neglected. She stated: “All the work is promised but nothing happens.” “Here I am paying an exorbitant sum of money for nothing really, we are just being robbed on annual basis,” she asserted. Mrs Campbell expressed that, alongside her council tax payments, the escalating service charges are “frightening,” particularly as she is retired and relies on a modest pension. “It’s intimidating, it’s a threat to your basic security, your financial security and your sense of wellbeing,” she added. Over 30 Members of Parliament addressed a letter to the managing director of FirstPort. The letter conveyed: “We are deeply concerned by what we have heard.” It further stated: “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 formal statement, a spokesperson for The FirstPort Group asserted: “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,” the spokesperson added. Readers can follow BBC Bristol on Facebook, X, and Instagram, or submit story ideas via email or WhatsApp at 0800 313 4630. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external websites. Information regarding the BBC’s approach to external linking is available.