New Build Estate Residents Remove Property Management Company After Service Charge Doubles
In a victory for new build homeowners, residents at the Faversham Lakes development in Kent have successfully campaigned to remove their property management company FirstPort following a dramatic increase in service charges and concerns over maintenance standards.
This case highlights the growing importance of new build homeowners understanding their rights and working together to challenge unreasonable charges. The 400-home development saw their total service charge bill nearly double, with an unexpected increase of £29,000, prompting residents to take action.
The situation at Faversham Lakes demonstrates several common issues encountered on new build estates. Residents reported receiving inconsistent invoices with minimal explanation, maintenance concerns going unaddressed, and a lack of transparency about rising costs - all red flags that new homeowners should watch out for.
One particularly concerning aspect was the variation in charges between neighbouring properties, with some residents claiming they were being overcharged by hundreds of pounds. This lack of consistency and transparency led to over 100 households refusing to pay their FirstPort fees - a significant show of collective action that ultimately proved successful.
The case is especially noteworthy as it is typically very difficult for freehold homeowners on new build estates to challenge their property management companies. However, the residents' unified approach led to the developer, Anderson, agreeing to take over the maintenance directly from February 1st.
For new build homeowners facing similar issues, the recently passed Leasehold and Freehold Reform Act 2024 promises to provide additional protections. The Act will strengthen residents' rights to challenge unreasonable estate charges and poor maintenance standards through tribunal proceedings. It will also mandate greater transparency in management fees - a crucial step forward given the experiences at Faversham Lakes.
Conservative MP Helen Whately's support for the residents' campaign highlights the growing political awareness of these issues. As she noted, the new legislation aims to address the power imbalance between residents and management companies.
While most provisions of the Act are not yet in force, with the Labour government planning consultations in 2025, this case demonstrates that collective action by residents can achieve results even under the current system.
For new build homeowners concerned about their property management arrangements, we recommend:
Carefully documenting all communications about service charges
Building relationships with neighbours to share information and concerns
Requesting detailed breakdowns of any service charge increases
Considering professional snagging inspections to identify maintenance issues early
This case serves as an important reminder that while new build homeowners may face challenges with property management companies, there are routes to resolution when residents work together effectively.
For more information about snagging inspections or property management issues, contact our team or download our comprehensive snagging guide.
