Baily residents in Newbury Parkway vent anger over ‘significant’ service charge spikes and year-long ordeal with broken lift
Residents at a block of flats in Newbury are furious after their lift stopped working a year ago.
But they have still seen their overall anticipated service charges rise by 90 per cent from 2023-2025 – well above inflation.
FirstPort, one of the UK’s largest residential property managers, writes on its website that it “makes sure customers feel safe and happy in their homes”.
But most of its residents living in the Baily building at Parkway would disagree.
Their 15-year-old lift hasn’t been working properly since last April, apparently breaking down for days at a time – with some residents trapped inside for hours.
Elderly and immobile residents have also been unable to use the disabled lifts.
Ruth Fosdike has lived on the third floor for around 10 years.
She told newburytoday: “I got trapped in the lift for two hours once.
“It would be ok and then somebody would get trapped and the fire service would have to come, which costs us because they charge for coming out.
“I've lost my independence. That's really what hurts.”
She said she manages using the stairs or the lift on level two, which leads to another lift down to the car park.
But the situation has been worse for Leonora Hill, whose late husband relied on neighbours to carry him downstairs from the fifth floor whenever the main lift wasn’t working.
“We once had carers stuck in the lift with my husband. He was needing carers three times a day,” she said.
“Every time I phoned [FirstPort] would treat it as a separate case. And now it's a daily part of life.”
But rocketing services charges have also left residents struggling to live – and unable to sell.
Invoices seen by newburytoday show one leaseholder’s anticipated annual bill nearly double from £3,114 in 2023 to £5,913 this year.
In a letter sent to residents in January, FirstPort confirmed it needs to collect £150,000 for Baily's contribution to reserves, of which an estimated £100,000 will be spent on fully refurbishing the south lift this year.
On its Statement of Anticipated Service Charge Expenditure for 2024-2025, it also estimates spending £55,000 on general maintenance costs – an 83 per cent rise from 2024.
It also anticipates spending £7,312 on lift maintenance and repairs, which rose by 170 per cent to £14,000 in 2024 before shrinking by 48 per cent this year – still an overall increase of 41 per cent from 2023-2025.
Residents’ anticipated contribution to reserves also soared to £150,000 from £43,447 during 2023-2024.
FirstPort spent approximately £100,000 on replacing 46 deteriorating wooden balconies with aluminum decking last year. And it said more balcony works are required this year and the next.
Leaseholders have the right to be consulted before their landlord carries out any major works using their service charges under Section 20 of the Landlord and Tenant Act 1985.
Speaking about the lift replacement, a FirstPort spokesperson told newburytoday: “To address this as quickly as possible, we have expedited the Section 20 process and are currently reviewing tenders to ensure the contract offers the best value for money.”
FirstPort also confirmed new disabled lifts are being installed at the landlord’s expense.
And regarding the anticipated increase to service charges, it added: “Each year, we carefully estimate the funding required for scheduled maintenance and necessary works, sharing cost estimates with homeowners in advance.
“We strive to keep costs manageable while maintaining the quality of services provided.
“Given the age of the buildings, major works including repairs and redecoration have been necessary to maintain the standards that residents would expect.
“It’s important to note that FirstPort does not apply any mark-up [the sum added to prices to make money] to the cost of services provided.”
FirstPort also confirmed no rebate was credited back to residents over the previous year.
Newbury MP Lee Dillon, who previously worked for social housing provider Sovereign Network Group, said he understands the steep rise in service charges is due to FirstPort not charging enough earlier on towards a sinking fund – money set aside over time to cover future large expenses, such as lift repairs.
He told newburytoday: “This is mismanagement from the landlord. They should have been more robust with residents around what a sinking fund is needed for.
“If they were suppressing service charges, they should help make that sinking fund back to where it should be.
“My belief is that they misinformed or gave poor advice to their leaseholders.
“The residents were pushing back on service charges being too high and the company accepted that, but that’s actually put leaseholders at a disadvantage going forward because they haven’t got the right level of reserves in their accounts.”
FirstPort was recently temporarily suspended from its own trade body The Property Institute due to a breach of its membership rules. It has since been reinstated.
Its CEO Martin King was summoned to Parliament in January by more than 30 Labour MPs – including Reading West and Mid Berkshire MP Olivia Bailey – to explain the company’s unreasonably high service charges, lack of communication to residents and failure to complete critical building maintenance at properties it manages all over the country.
Mr Dillon added: “The fact that a professional body has suspended one of the largest managing agents in the country can only be a cause for concern for leaseholders who have to live under their management.
“[The Property Institute] supports the Labour Government’s approach that a managing agent should have to pass a competency test. But it would actually like to go further and see a regulator put in place, which I would support as well.”
He confirmed he met with The Property Institute on Tuesday, March 11, to discuss Baily residents’ concerns and is now preparing to meet with FirstPort.
A spokesperson for Baily’s landlord Aberdeen added: “As is always the case with older buildings, necessary upgrades have had to be made, upgrades which leaseholders have told us are very important to them.
“These upgrades and ongoing maintenance have naturally increased costs, together with increased utility costs, and fire safety regulatory requirements.
“While we appreciate that service charge increases can be a source of stress for households, they are a necessary part of ensuring residents enjoy the standard of living they expect.
“After a number of conversations over a number of years on the level of the service charge fee, this should not come as a surprise.”
FirstPort continues to act as the property’s managing agent.
