Property Service Charges

Katie Lam Excerpts

Thursday 30th October 2025 Commons Chamber

[Katie Lam (Weald of Kent) (Con)]

I congratulate my hon. Friend the Member for Reigate (Rebecca Paul) on securing this debate in the House. Earlier this year, I wrote to hundreds of residents across the Weald of Kent to get a better understanding of how property management companies operate across our home. What I discovered was very worrying and, as many Members here will recognise, it is an all too common story. To date, I have heard from nearly 100 people across 11 estates all complaining about their property management company FirstPort. The pattern is as depressing as it is predictable: steep and unexplained increases in service charges, slow and inadequate responses to maintenance issues, and a serious lack of accountability and transparency.

Let me share a few examples. Constituents in Yalding and Headcorn have told me that they face a 70% and a 40% rise in their management fees respectively. Those are not minor uplifts, and nobody can tell them clearly what they are paying for. I understand that costs are rising not least for things like insurance, but at the very least, hikes like that should be clearly explained. Constituents in Marden and Kingsnorth have documented cases where no maintenance at all was carried out for months, despite repeated chasing—grass not cut, lights not fixed and rubbish not cleared—and yet the bills keep coming.

Finally, constituents in Tenterden and Coxheath have told me that it is beginning to affect the value of their homes, as my hon. Friend mentioned. Some have said that their properties are becoming unsellable because buyers will not take on the liability of these charges and this management. In one case, two sisters are trying to sell their late father’s flat. He bought it for £150,000 and they now cannot even sell it at £60,000. At auction, the price has fallen below £20,000. They told me that local estate agents refuse to list it because of the fees associated with managing the property.

Much of this is part of a wider pattern. Many residents on these estates pay twice for what most people would regard as the same basic services. They pay full council tax to their local authority, as everyone does, but on a growing number of estates, the council has not taken over the roads, street lighting or green spaces and therefore does not maintain them.

[Richard Foord (Honiton and Sidmouth) (LD)]

To that point about councils not having yet adopted such things as the roads or pavements, I have the example of Pebble Beach in Seaton where I represent, where residents have been charged fees and even threatened with legal action before the estate has been handed from the developer to the property management company. Has she come across that, too?

[Katie Lam]

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.