Property Service Charges

Jim Shannon Excerpts

Thursday 30th October 2025 Commons Chamber

[Rebecca Paul (Reigate) (Con)]

I beg to move,

That this House has considered property service charges.

It is a privilege to bring this important debate to the House today. I thank the Backbench Business Committee for granting it.

I remember vividly the day, over 20 years ago now, when I picked up the keys to my first flat in south-east London. It took time to get to a position where my salary was sufficient to secure a mortgage and to save up the deposit, but I managed to do it. I spent the first few weeks on a mattress on the floor while I saved for a bed, but it was the most amazing feeling in the world to own my own home. I was fortunate enough to have purchased the freehold, so I never had to face paying service charges that I could not afford and I never had to rely on a third-party management company to make essential repairs. When the time was right for me to move on, my flat was easy to sell.

Others have not been so lucky. They have bought leasehold on a private estate, and with that comes a life sentence. Today, I want to give a voice to those people on the hook for ever-increasing service charges, trapped in homes they cannot afford but cannot sell either, who thought they were buying their dream home when actually it was the start of a nightmare. Make no mistake—this is no exaggeration on my part—people’s lives have been and are being ruined by excessive service charges.

Let me start, Madam Deputy Speaker, by telling you about Park 25, a housing estate in Redhill. It was built 18 years ago and has 500 homes, a mixture of houses and flats. It is a contemporary and stunning site, with the type of homes that people want to live in. It is particularly attractive to key workers, such as doctors and nurses, due to its proximity to East Surrey hospital. Like many new estates, it was built by private developers with no arrangements made for the local authority to adopt the communal land after completion, so FirstPort was appointed as the property manager to maintain the estate. This means that residents of Park 25 pay an expensive service charge to FirstPort, on top of their mortgage and on top of their council tax, for pretty basic services. Those service charges are going up significantly every year, driving some homeowners to the absolute brink.

I first became aware of the issue when I met Louise, a single mum, at my first ever surgery last year—a meeting I will never forget. She told me how she had purchased a one-bedroom flat on Park 25 when they were first built, but the service charges quickly increased, becoming unaffordable for her, in part due to the expensive biomass communal heating system. In desperation she tried to sell, but three times over she lost her buyer. She now lets out the flat and has moved back in with her family, unable to access the equity that would allow her to buy somewhere else. She is trapped, not able to move on with her life.

Then there is Alfie, who purchased a two-bedroom flat in 2018. He was

“thrilled to get on the property ladder at the age of 23, thinking it was a valuable investment.”

His first service charge payment was just under £2,200 per annum. Six years later, it is over £3,600—a 70% increase. For that, he says

“they basically cut the grass and insure the building”.

When heating is included it gets even worse, due to the biomass system. The first amount becomes £3,400, going up to a whopping £8,000 per annum—a 135% increase. Again, Madam Deputy Speaker, I remind you that he is paying council tax and a mortgage on top.

Alfie did consider challenging the service fees at a tribunal, but he was advised by the Leasehold Advisory Service that for any chance of success he would need to appoint a surveyor to review the service charges. However, to do that there needed to be a recognised tenants’ association, and to set that up, over 50% of leaseholders needed to agree. In the case of Park 25, he quickly found that to be an impossible task as many rent out their properties and so are not easily traced. With that door closed to him, he tried to sell his property for over two years—even for £50,000 less than he bought it for just to cover the mortgage. There was lots of interest, but every time the potential purchaser found out about the service charges, they withdrew. Alfie says:

“Understandably, nobody wants to buy it. The ‘we buy any property’ companies won’t touch it and even the auction sites which run a ‘no sale no fee’ policy don’t want to take it on”.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this important debate—the fact that so many Members are present is an indication of its importance. In my constituency I have seen an increase in the number of people who bought their house or flat many years ago and are now facing difficulties with the level of charges, unexpected cost increases, and poor communication and service quality. Does she agree that a service charge can never be seen as a blank cheque for the owners, and that what those charges are spent on must be itemised and made clear?

[Rebecca Paul]

I completely agree.

To add insult to injury, Alfie told me that FirstPort charges an £80 administration fee if payment is not made within 30 days of demand. In 2023 he received his fee on Christmas day while in discussions about a payment plan to settle outstanding fees. FirstPort refused to remove the charge despite his financial struggles. Alfie has now left the UK and is renting his flat out at a loss, because that is the only option available to him.