UK Housing Association Defends Service Charge Hikes Amid Resident Complaints
Curo cites rising costs and new safety regulations for significant bill increases affecting leaseholders.
Housing association Curo is defending substantial increases in service charges levied on leaseholders, stating that rising costs and updated safety legislation necessitate the hikes. Residents have reported seeing their annual bills multiply, with some facing thousands of pounds in additional charges for essential maintenance and safety upgrades.
Callum Maddern, a Bath resident, described his service charge escalating six-fold to over £8,000 annually. He stated that the increase was to cover fire safety work and new windows, with the funds being drawn from a sinking fund that had previously held approximately £5,000. Maddern recounted experiencing freezing temperatures in his home due to an inability to afford heating and described Curo's communication as uncaring, suggesting he sell his property to cover the fees.
Ken Pearson, another leaseholder in Bath, saw his sinking fund contributions jump from £124 to £1,767 when a new roof was required for his building. Pearson believes landlords should better prepare leaseholders for such large, anticipated expenses and that Curo has "failed" its residents by not foreseeing these financial burdens.
Andrew Snee, director of housing and support at Curo, acknowledged that communication regarding the charges could have been improved and apologized for any distress caused. However, Snee maintained that the situation resulted from a "perfect storm" of increasing living costs, rising contract prices, and enhanced property safety legislation. He stated that the association does not profit from these contributions and is attempting to support residents in managing these expenses.
Snee explained that sinking funds can be depleted by prior maintenance work, leaving minimal reserves when major projects like roof replacements are necessary. He emphasized Curo's commitment to transparency and honesty in communicating these costs.
The UK government is reportedly working on new legislation to address leasehold issues, including a potential ban on its use for most new flats and new rights for leaseholders to request building improvements.