Homeowners of new-build properties say they are “disgusted” that service charges have more than doubled in five years.
Residents of the New Bolton Forest development in Bradford say their annual bills have increased from £150 to more than £300 and are concerned the charges could rise further.
Ryan Godfrey, who lives on the estate, called on the government to intervene and cap service charge increases.
Blue Property Management UK, the management company responsible for maintaining the estate, said it was working to “ensure all costs are competitive” and “remained 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 being worth the price to buy the home he wanted.
He said the fee covers the cost of maintaining common areas, such as mowing lawns or repairing roads on the estate.
But he said costs have more than doubled since he moved in.
“We were absolutely shocked to be told at the time of purchase it would be this amount and then for the amount to be so different. [five years later],” he said.
“and then [we had] The demand for funds within 30 days is considerable.
“We don’t have an itemized bill or an itemized bill, it’s just a service fee of about three hundred pounds.”
New Bolton Woods in Bradford is one of a number of new-build estates where homeowners must pay management fees [DAVE EDWARDS/BBC]
Around 40% of new homes built in the UK over the past five years have been built on “private estates” as cash-strapped councils decided not to build new roads.
Affected homeowners refer to this pattern as “wooling.”
Mr Godfrey, 26, said he had launched a campaign to reduce fees and said he believed residents were being “exploited”.
“They’re trying to charge us an outrageous amount for landscaping, they’re trying to charge us £26,000 a year for the north end,” he said.
“We had quotes from local landscaping companies and it was almost half the price.”
He also wants the government to impose a cap on service charges.
“They could raise the price to £1,000 next year for no reason and we would have no place to stand,” he said.
Ryan Godfrey is leading a local campaign to get management fees cut [DAVE EDWARDS/BBC]
British Blue Property Management said in a statement: “We are aware of the concerns raised by residents and we are committed to clarifying the costs associated with the management of New Bolton Woods.
“At Blue Property Management, we work hard to ensure that all costs are competitive, kept at affordable levels, and communicated effectively to residents.
“To achieve this, we are engaging with local contractors to ensure we seek competitive prices and working with residents’ nominated contractors.
“Concerns about payment dates and payment plans have been raised and addressed and this message has been communicated to all residents.
“We will be arranging meetings with all residents in the new year to discuss any issues and share exciting plans for the future.”
A report from the Competition and Markets Authority (CMA) said property management fees are often “high and unclear”, while “one-off, unplanned costs for major repair works can cost thousands of pounds, causing considerable stress on homeowners”.
The Department of Housing, Communities and Local Government did not respond to the BBC’s request for comment.
The government has previously promised reforms to “end the ‘freehold’ injustice of homeowners paying fees on freehold properties”.
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