Property Service Charges

David Reed Excerpts

Thursday 30th October 2025 Commons Chamber

[David Reed (Exmouth and Exeter East) (Con)]

Thank you very much, Madam Deputy Speaker. It is nice to have his name on the record.

I am very grateful for the opportunity to speak in this debate, and I thank my hon. Friend the Member for Reigate (Rebecca Paul) for bringing the topic to the House’s attention. In my constituency, this is rapidly becoming one of the most frequently raised issues. The biggest problem is that people who have worked hard, saved responsibly and bought a home in good faith find themselves trapped in a system that is opaque, unaccountable, and, in the worst cases, exploitative.

Like other Members, since being elected I have been inundated with complaints about one company in particular. We all know its name: FirstPort. It is, by some distance, the most problematic housing management company operating in my constituency. My office is dealing with almost 40 open cases relating to developments that it manages. The stories are depressingly consistent: residents describe unexplained charges, unclear billing and long delays in resolving the simplest issues—we have heard many such examples today. They send long chains of unanswered emails. They attend my surgeries exhausted and frustrated. When my team contacts FirstPort on residents’ behalf, we often wait an unacceptable length of time for a reply, and progress—if it comes at all—is slow.

Earlier this year, I and other Members of this House met FirstPort’s managing director. I hope, Madam Deputy Speaker, that you see me as a chilled-out kind of guy, but I left that meeting with my blood boiling, and other Members had a similar experience. We asked straight- forward questions but received vague answers, rehearsed corporate language and no clear commitment to improving customer service. A group of MPs will meet FirstPort again soon, and I hope that the company has set to work in earnest. On reflection, what angered me most was that many of the people caught up in these issues are elderly. They feel intimidated by the complexity of the system. They are passed from pillar to post, ignored when they raise legitimate concerns, and made to feel like an inconvenience simply for asking what their money is being spent on.

However, when FirstPort wants payment—this is something that it is very good at—its communication becomes clear and very persistent. When residents in several developments tried to move away from FirstPort, essential financial documents, including sinking fund balances and reconciliation statements, were withheld. In some cases, large sums of residents’ money were retained for months, preventing new management companies from planning maintenance or accounting properly. In my constituency, local resident directors Karen Wheeler and David Buller—fierce campaigners—have documented delayed fund transfers, missing paperwork and opaque accounting.

Karen eventually gave up trying to reconcile the final balance because the spreadsheets were, in her words, “unfathomable”. For Karen’s development, the cost was about £500—quite a significant sum for many elderly residents—but, as my hon. Friend the Member for Reigate rightly said, the real issue here is the power imbalance. Residents have no transparency, no clarity and no meaningful route to resolution, despite FirstPort’s own code of conduct, which promises transparency, value for money and excellent customer service. I think we can all agree that that does not stack up.

This is neither an isolated concern nor a partisan one. Former Ministers have highlighted FirstPort and other companies being consistently associated with high charges and poor service. The BBC has reported homeowners being billed for things such as “terrorism insurance”, without any context, while basic grounds maintenance is not completed. More than 30 MPs have written jointly to FirstPort demanding action.

We all know that the problem is structural. Far too many homeowners are locked into contracts they never chose, are forced to pay service charges for poorly maintained communal areas, and have no ability to change providers when the services fail. As we have heard, many homeowners on private estates—the so-called “fleecehold” estates—are effectively paying twice: once through council tax, and once through service charges. Leaseholders trying to sell their homes frequently face long delays and eye-watering administration fees, and what should be a proud milestone—owning or selling a home—becomes a source of stress and financial burden.

We have heard that legal protections exist, but they are not enough. The Leasehold and Freehold Reform Act 2024 will bring mandatory transparency—

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Will the hon. Gentleman give way?

[David Reed]

I have one minute left and I will make my final points. The Act aimed to bring mandatory transparency, through standardised billing, greater rights to challenge charges, and easier routes to taking over management, but those reforms are not yet implemented. Why is that? I hope that the Minister, in his closing remarks, will set out a course for when those measures will be implemented, and will say what new legislation will be brought in to ensure that people are protected. I finish on a point on which I think we all agree: residents who are on these schemes do not need more consultations; they need action, and this Parliament must deliver.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. It is up to Members if they wish to take an intervention. If they do, they have an extra minute on their speaking time.