Residential Estate Management Companies

Tom Hayes Excerpts
Tuesday 22nd April 2025

(1 week, 2 days ago)

Westminster Hall
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Tom Hayes Portrait Tom Hayes (Bournemouth East) (Lab)
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In their interactions with management companies, my constituents feel done to, shut out, left behind and ignored. It feels like my constituents are hearing one message—“You don’t matter”—but my constituents do matter, and I want to represent some of them in this debate; sadly, time will not allow me to mention them all.

Two of my constituents live in two separate properties in Bournemouth East. They have been defrauded by Initiative Property Management, the sudden collapse of which left leaseholders with depleted reserve funds and significantly out of pocket. One leaseholder estimates that they have lost £80,000 and that they and the other residents in their block have lost around £1,200 per flat per year. Another estimates a total loss from fraud at around £10 million. A serious fraud investigation is under way.

Another constituent has suffered at the hands of the management company Scanlans Ltd, which has asked for £5,000 a year from them and other residents but has done nothing to maintain the garden and communal areas. At one point, a dead rat was left in the communal area for months. Scanlans is now in ongoing communication over plans to address those issues, but no clear action has yet been taken.

Another constituent has had to deal with Residential Management Group. RMG refused to deal with a rat infestation, and left the door to the communal area unsecure, with homeless people breaking in to sleep there. The case has been taken up with RMG and is ongoing. The themes that many of us will discuss today are common: excessive and unjustified service charge increases, a lack of transparency and financial accountability, poor communication if any at all, and poor building maintenance and unresolved issues. Enough is enough.

I want my constituents who are watching, feeling let down and having been left out of pocket by unacceptable conduct, to know that as their MP I will continue to fight on their behalf and alongside them for justice. I will continue to work to ensure that nobody else has to suffer the hardships, anguish and abuse that they have suffered. We are fighting this together. We are making progress, and I am pleased that the Government are in a hurry to address this important issue.