A young couple from Surrey have described feeling 'completely stuck' in a new-build home they cannot sell, blaming crippling service charges that have more than tripled since they moved in.
The Stranglehold of Soaring Service Charges
Nicholas, a 36-year-old teacher, and his wife bought their two-bedroom leasehold flat on the Park 25 estate in Redhill seven years ago. At the time, their monthly service charge was a manageable £200. They now face a staggering £700 per month, a sum almost equivalent to their £800 mortgage payment.
"We feel completely stuck. It’s like having a noose around your neck that’s just getting tighter and tighter," Nicholas said. To cover the escalating costs, he has been forced to take on a second job, working weekends to prevent their savings from evaporating.
"If I hadn’t taken on a second job, our savings would have evaporated and we couldn’t have paid the service charge. We would probably have had to forfeit the property," he admitted, highlighting the severe financial pressure.
A National Leaseholder Crisis
The situation at Park 25 has drawn sharp criticism from local MP Rebecca Paul, who states it is "literally ruining lives". She has branded the development's issues as "one of the worst leaseholder nightmares in the country".
The exorbitant fees have effectively rendered the properties unsellable. Nicholas revealed they have lost potential buyers who researched the estate online and discovered the well-documented problems with service charges and the management company, FirstPort.
"We earn more now than we ever have as a couple but we still can’t make that next step," he lamented, referring to their inability to move on and up the property ladder.
Industry and Government Response
A spokesperson for FirstPort defended the charges, stating they "reflect the actual costs of managing and maintaining the development" and that the company does not take commission from contractors. They added they are working with residents and the local MP to ensure charges are "clearly explained and understood".
The case has intensified calls for long-promised leasehold reform. Conservative MP and Housing Select Committee member, Lewis Cocking, said "millions of people up and down the country" are waiting for action, accusing the Government of "kicking the can down the road".
In a statement to the press, a spokesperson for the Ministry of Housing, Communities & Local Government said they had raised serious concerns with FirstPort and would monitor its performance. They reiterated plans to make it easier for leaseholders to challenge costs and confirmed a ban on leaseholds for new flats to give homeowners more control over bills.
