Homeowners want end to 'extortionate' service fees

Homeowners on a new-build estate say they are "disgusted" after their service charges more than doubled in five years.

Residents on the New Bolton Woods development, in Bradford, said their annual bills had gone from £150 to more than £300 and fear they could rise further.

Ryan Godfrey, who lives on the estate, has called on the government to intervene and introduce a cap on service charge hikes.

Management company Blue Property Management UK, which maintains the estate, said it worked hard to "ensure all costs are competitive" and "kept at an affordable level".

Lee Hart, 30, who bought his home in April 2020, said he had accepted the initial annual fee of around £150 a year as a price worth paying for the home he wanted.

He said the fee covered the costs of maintaining communal areas, such as cutting the grass or repairing the roads on the estate.

However he said the charge had more than doubled since he moved in.

"It was a real shock to us to be told at the time of purchase it was going to be this amount and then the amount be so vastly different [five years later]," he said.

"And then [we had] quite an aggressive demand for money in 30 days.

"We had no breakdown on the bill, there was no itemised bill, it was just a service charge of three hundred and something pounds."

The "private estate" model has been used for about 40% of new-build houses in Britain over the last five years as cash-strapped councils decide not to take responsibility for new roads.

Affected homeowners have dubbed the model "fleecehold".

Mr Godfrey, 26, said he had started a campaign to get the fees reduced, saying he believed residents were being "exploited".

"They're trying to charge us a ridiculous amount for landscaping, they're trying to charge us the north end of £26,000 a year for that," he said.

"We have received quotes from local landscaping companies which are almost half that."

He also wants the government to introduce a cap on service fees.

"They could up it to £1,000 next year with no justification and we'd have not a leg to stand on," he said.

In a statement, Blue Property Management UK said: "We are aware of the concerns raised by residents, and we are committed to delivering clarity around the charges associated with the management at New Bolton Woods.

"At Blue Property Management, we work hard to ensure all costs are competitive, kept at an affordable level and are communicated effectively with residents.

"To this endeavour we are approaching local contractors to ensure competitive rates are sought as well as engaging with residents' nominated contractors.

"Concerns have been raised and addressed in relation to payment dates and payment plans, this information has been communicated to all residents.

"We will be arranging a meeting with all residents in the new year to discuss any concerns and share exciting plans for the future."

A report by the Competition and Markets Authority (CMA) said estate management charges were often "high and unclear", while "one-off, unplanned charges for significant repair work can cost thousands of pounds and cause considerable stress to homeowners".

The Ministry of Housing, Communities and Local Government did not respond to the BBC's requests for comment.

The Government has previously promised reforms to "end the injustice of 'fleecehold' where homeowners on freehold estates pay fees".

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