Last month, Rochester and Strood MP Kelly Tolhurst held a debate in Westminster Hall around excessive and unregulated service charges issued by property management companies.
Kelly has been contacted by a number of constituents since her election in 2015 raising concerns and complaints around these high charges and the essential services not being carried out. The typical annual fee for new build homes is now £2,777, while for older properties it is £1,863.
During the debate, Kelly highlighted several instances when local residents (both freeholders and leaseholders) reported the exorbitant costs and issues with poor service by local property management companies, including SDL Bigwood, London & Quadrant Housing and Hyde Housing. Some residents have seen their service charges rise from £85 per month to £128, while some of these companies have been known to claim for services managed by the local authority or on some occasions neglecting to carry out any promised work.
Kelly believes the problem will only get worse with the prospect of tens of thousands of new homes set to be built across Medway alone over the next fifteen years.
Housing Minister, Alok Sharma MP, responded saying that if one pays hundreds of pounds for a service, one expects the person providing the service to be a competent, experienced professional who will deliver what has been agreed. He also added that the lack of regulation has led to unacceptable situations within the sector.
On the issues relating to property management companies, Kelly said,
“serviced residences throughout the country are being subject to this unregulated scandal and with an increase in house building going on, more and more people will be subject to the unfair will of private companies without any course of redress.
“We are talking about people’s livelihood and in too many circumstances they are being ripped off by a service that does not respect value.
“I hope that the Government recognises the flaws within the sector and uses its recently launched consultation to set new standards in the interest of freeholders and leaseholders across the country.”
The government review of property management ran until 29 November: https://www.gov.uk/government/consultations/protecting-consumers-in-the-letting-and-managing-agent-market-call-for-evidence