Residents Challenge £200,000 Maintenance Bill

Leaseholders residing in a block of flats have lodged a complaint with the housing ombudsman regarding a disagreement over maintenance expenses with their management company. Occupants of Park View Court in Kenton, Newcastle, stated that RMG intends to charge them £200,000 for necessary repairs, which they contend should already be covered by their existing monthly fee. Resident Neil Scandrett noted that the fee has increased to over £123, adding that “and they just haven’t done any repair work.” RMG, however, disputed claims that Park View Court had deteriorated into a state of disrepair, asserting that service costs undergo auditing, with any surplus funds being returned. Individuals living in the apartments reported issues such as overflowing gutters, deceased rats, dampness, and decaying or broken fences. “The whole place just looks tired,” Mr. Scandrett commented. He continued, “Now they’re saying, because the place looks tired, they want to charge us £200,000 to do necessary repairs.” He then questioned, “But we’ve been paying maintenance since 2002. Where’s this money gone?” Furthermore, residents described an “absolutely terrifying” rat infestation. Householder Julie Moody shared that her neighbor was “distressed to think that she had rats in her house.” She stated, “We couldn’t get RMG to take responsibility at the time,” and lamented, “It’s not what you pay huge management charges for.” Moody concluded, “We can’t see that we get anything for the money that we pay.” RMG stated that pest problems, which arose following “misuse of the bin store,” have since been resolved. The company also indicated that the expenses for managing the buildings have risen but are audited by an external firm “to ensure they are correct.” A spokesperson confirmed, “Customers receive a full breakdown of this and any underspend on is returned to them.” The company asserted it was “unaware of any current issues of damp” and that its property inspections confirmed regular maintenance was being carried out. The spokesperson explained that the currently required external work, estimated at approximately £200,000, had been “suggested over several years, but often delayed with the Residents’ Association raising concerns over costs.” They added that the work was “essential, but we will only proceed after full consultation with the customers, who have the right to nominate contractors and scrutinise the quotes.” Linda Duval, who leads the residents’ group, emphasized that her property represents her investment. She remarked, “I didn’t realise at the time that the service charge would cripple me,” and added, “When I become a state pensioner, which is not going to be that long, the service charge is going to be more than a mortgage.” Catherine McKinnell, the Labour Member of Parliament for the leaseholders, highlighted the widespread nature of the issue. She observed, “A lot of residents are having real difficulty with management companies that run their properties,” and criticized the absence of “accountability, no transparency about how money is spent.” McKinnell concluded by stating, “As a government, we really want to prioritise putting the power back into the hands of residents, who can have much greater say in how things are being managed.” Connect with BBC Newcastle on X, Facebook, Nextdoor and Instagram. Submit your story ideas to northeastandcumbria@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.