Desperate Leaseholders 'Milked' by Management Companies Amid Labour Reform Delays
Sarah, a schoolteacher in her 30s, says the annual service charge of £1,400 is just the beginning – she's also being hit with bills for a reserve fund that have risen steeply. The management company aims to secure an extra £400,000 from residents for roof replacement and other projects.
For Sarah, who owns a one-bedroom flat in Moseley, south Birmingham, life has become unmanageable. She works full-time but is forced to take up a second job just to keep up with the bills. When she bought her property, she was told the cost of the proposed works would be around £4,500 per flat – but the bill has since soared, leaving her unable to sell.
Sarah's concerns are not unique. Across England, leaseholders are being forced to pay soaring service charges and poor maintenance, with nowhere to turn for support. In Wanstead, east London, residents at Buxton, Hood and Lister Lodges face a £40,000 bill per household for major works that have yet to start, more than five years after they were first planned.
The issue is not just about the financial burden; leaseholders are also facing concerns about safety. In Pickering Close, Hackney, Jonathan, who owns a leasehold flat, has been forced to move out due to water pouring into his home when it rains. His ceiling has collapsed in a neighbouring flat, leaving him living with spikes of anxiety.
Government promises have not yet materialised, and leaseholders are growing increasingly frustrated. A spokesperson for Newham council said there had been delays due to environmental issues and planning complications – but residents say the problems pre-date any government intervention.
"We're paying almost 10% of our property value just for this reserve fund," says Shabbir Mohammed, a leaseholder on the site for over 20 years. "It's ruining people's lives. The problem has been reported for years, and I believe that's what it is – sanctioned criminality."
As Labour reform delays continue, desperate leaseholders are being forced to pick up the tab for management companies' mistakes. For Sarah and countless others like her, there's little hope of a resolution until the government acts.
Sarah, a schoolteacher in her 30s, says the annual service charge of £1,400 is just the beginning – she's also being hit with bills for a reserve fund that have risen steeply. The management company aims to secure an extra £400,000 from residents for roof replacement and other projects.
For Sarah, who owns a one-bedroom flat in Moseley, south Birmingham, life has become unmanageable. She works full-time but is forced to take up a second job just to keep up with the bills. When she bought her property, she was told the cost of the proposed works would be around £4,500 per flat – but the bill has since soared, leaving her unable to sell.
Sarah's concerns are not unique. Across England, leaseholders are being forced to pay soaring service charges and poor maintenance, with nowhere to turn for support. In Wanstead, east London, residents at Buxton, Hood and Lister Lodges face a £40,000 bill per household for major works that have yet to start, more than five years after they were first planned.
The issue is not just about the financial burden; leaseholders are also facing concerns about safety. In Pickering Close, Hackney, Jonathan, who owns a leasehold flat, has been forced to move out due to water pouring into his home when it rains. His ceiling has collapsed in a neighbouring flat, leaving him living with spikes of anxiety.
Government promises have not yet materialised, and leaseholders are growing increasingly frustrated. A spokesperson for Newham council said there had been delays due to environmental issues and planning complications – but residents say the problems pre-date any government intervention.
"We're paying almost 10% of our property value just for this reserve fund," says Shabbir Mohammed, a leaseholder on the site for over 20 years. "It's ruining people's lives. The problem has been reported for years, and I believe that's what it is – sanctioned criminality."
As Labour reform delays continue, desperate leaseholders are being forced to pick up the tab for management companies' mistakes. For Sarah and countless others like her, there's little hope of a resolution until the government acts.
... i mean what's the point of having a reserve fund if it's just gonna be used for more and more stuff? £40k per household is wild 
... i got a friend who lives in london and she's been dealing with this same thing, but at least her building was new when she bought it 
. i feel so bad for people like sarah who are just trying to make ends meet 
. it's not just the money though, safety is a big concern too... poor jonathan in hackney 
... and what really gets me is that these management companies aren't being held accountable 
... they're basically just milking people for all they're worth 
.
? And it's not just about the money, it's like they're playing with people's lives here 
. I can imagine how Sarah must be feeling, working full-time and having to take a second job just to keep up, while also dealing with the stress of living in a leaky building 
. And what's worse is that these management companies are basically milking them dry 
The government promising to act but not doing anything about it 
. I mean, we all knew there were going to be problems with the labour reforms, but come on! 
This is just a case of management companies taking advantage of people who are already vulnerable. It's like they're just counting on everyone else to foot the bill while they get richer 
I'm actually hoping that something changes soon, maybe some new regulations or laws are put in place to hold these guys accountable.
. The fact that some people are having to take up second jobs just to keep up with the bills is just not right 
what's wrong w/ these companies? dont they have a responsibility 2 their ppl?