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Property Service Charges

I am afraid so, and fairly regularly in fact. The legal action that the hon. Member mentions is important to reflect on because it can in some cases be deeply distressing and seem very aggressive for people just trying to get what they have already paid for, which in some cases does not even exist yet.

Residents are required to pay a second set of charges on top of the council tax to a private management company, such as FirstPort. They pay council tax for street lighting and then they pay a private company for street lighting. They pay council tax for maintaining the verges, and then they pay again for someone to cut the grass—except of course in many cases the grass is not cut. In these situations, the homeowner has almost no practical leverage. The council says, “It is private land”; the management company says, “You are contractually obliged to pay us anyway”; and the person who lives there, who cannot simply switch provider and who must disclose the charges when they come to sell, is left with little ability to challenge poor value. People are paying more and getting less. There is a continuing lack of transparency, with residents routinely denied a proper breakdown of charges, not given meaningful answers and, in some cases, not even given the dignity of a reply.

FirstPort is one of many property management companies that have been allowed, in some respects, to conduct themselves with impunity, largely because local residents have almost no consumer power or transparency. I have met representatives of FirstPort, and they assure me that the company is changing and improving. I very much hope that this is true. But, in case that does not happen, the last Government took important steps to address this through the Leasehold and Freehold Reform Act 2024.

The purpose of the Act is to give residents clear information about what they are being charged and why; to widen access to redress when something goes wrong, which is crucial; and to ensure that disputes with management companies can be resolved fairly. But residents will not see those benefits until all the secondary legislation is brought into force, guidance is published and management companies are given a clear expectation that they will need to comply.

I caution the Government against assuming that the answer might be to layer on fresh regulation or to draft a new Bill. I encourage the Government to accelerate the implementation of those elements of the Act. My constituents do not want to wait, say, another year to see itemised, comprehensible service charge bills and prompt access to redress. They accept that the streetlights must be maintained, the gutters cleared and insurance bought—they know all of that costs money—but what they will not accept, and nor should they, is paying more for less with no answers and no accountability.

2.9 pm