Aster/Synergy Housing Service Charges Rip Off for Private Owners of ex council houses

MJH3

problem with Aster Service Charges for astronomical annual usage, repairs and replacement costs of shared Sewage Treatment Plant (STP). We are private owners of an ex-council house of which there are 6 in our cul de sac. After we bought our house, Dorset Council sold the remaining 4 properties they owned along with the STP to Aster/Synergy Housing Ltd - a social housing business with charitable tax status. Aster say that as we are not their tenants and they are not our landlords “there is no legal obligation to provide copies of invoices (or) breakdown of costs”  BUT as providers of an essential utility service which we pay for the use of we do surely have legal rights under the Consumer Rights Act 2015??? We currently pay Aster £700.75 a year for the use of the STP and are now being asked to pay 5 times this amount at £3,500 for the year end 310323 with replacement of the STP billed at an estimated £21K each owner. Online searches reveal little help as Aster are not a utility company. Further research has revealed that this is not an isolated problem but is happening nationwide to all private owners of ex council properties who rely on Aster/Synergy Housing Ltd to provide the use of their shared STP.

user1977

This is probably better posted on the House Buying board - I suspect such service charges are outside the scope of the Consumer Rights Act.

Aylesbury_Duck

MJH3 said:

problem with Aster Service Charges for astronomical annual usage, repairs and replacement costs of shared Sewage Treatment Plant (STP). We are private owners of an ex-council house of which there are 6 in our cul de sac. After we bought our house, Dorset Council sold the remaining 4 properties they owned along with the STP to Aster/Synergy Housing Ltd - a social housing business with charitable tax status. Aster say that as we are not their tenants and they are not our landlords “there is no legal obligation to provide copies of invoices (or) breakdown of costs”  BUT as providers of an essential utility service which we pay for the use of we do surely have legal rights under the Consumer Rights Act 2015??? We currently pay Aster £700.75 a year for the use of the STP and are now being asked to pay 5 times this amount at £3,500 for the year end 310323 with replacement of the STP billed at an estimated £21K each owner. Online searches reveal little help as Aster are not a utility company. Further research has revealed that this is not an isolated problem but is happening nationwide to all private owners of ex council properties who rely on Aster/Synergy Housing Ltd to provide the use of their shared STP.

The first thought is that did your conveyancing solicitor highlight the potential risk that the council might sell the other houses and that this sort of thing might arise?  I'd check your documents from that time to see if you were told about it.  

Given the sum involved, and the tens of thousands extra this will equate to in years to come, I'd get legal advice.

Alderbank

As above ^^

Consumer rights are between a trader and a consumer because otherwise the trader might have an unfair advantage over the consumer who doesn't have the benefit of professional legal advice. Property issues are expressly excluded because the purchaser does always have professional advice through their conveyancing solicitor.

Aster/Synergy agree that the prices are quite high for owner occupiers like the OP. The say that with hindsight perhaps they should have set up sinking funds which over time would have built up reserves to pay for large repair and maintenance bills which are now arising.

But they didn't.

Here is an example: https://www.hampshirechronicle.co.uk/news/23542334.aster-review-sewerage-charges-test-valley-residents/

MJH3

Aylesbury_Duck said:

The first thought is that did your conveyancing solicitor highlight the potential risk that the council might sell the other houses and that this sort of thing might arise?  I'd check your documents from that time to see if you were told about it.  

Given the sum involved, and the tens of thousands extra this will equate to in years to come, I'd get legal advice.

Thanks we have contacted a lawyer which is hugely expensive. Our deeds say

The Council and its successors in title hereby covenants with the Purchaser that (subject to the Purchaser observing Clause 5 of the Fourth Schedule hereto) it will forever hereafter maintain and repair the sewage treatment plant into which the property drains……..’

 

As Aster as the 'successors in title' since they bought the land from Dorset Council we assumed they were responsible but their lawyers say that positive covenants do not run with the land and therefore we are liable for repair and replacement costs.

IV Schedule Clause 5
’To pay a charge for the use of the sewage treatment plant referred to in clause (1) of the Second Schedule hereto to be calculated in a sum similar to that which would have been applied by the Wessex Water Authority or such other Authority as may from time to time be responsible for mains drainage such charge to be payable annually in advance to the Purbeck District Council.'

Aster's lawyers say their interpretation is that 

"From the website of Wessex Water over 50% of the money charged through bills is spent on the maintenance and repair of the sewage treatment centres. Further, the covenant at Clause 5 of the Fourth Schedule should be interpreted as meaning the amount that would be charged by Wessex Water were they operating a Private Sewage Treatment plant in Wareham. It is not the rate for the supply for the services through a public network which benefits significantly from economies of scale........"

But they are charging for repairs and replacement as a separate costs and their interpretation of our deeds does not align with ours

MJH3

Alderbank said:

As above ^^

Consumer rights are between a trader and a consumer because otherwise the trader might have an unfair advantage over the consumer who doesn't have the benefit of professional legal advice. Property issues are expressly excluded because the purchaser does always have professional advice through their conveyancing solicitor.

Aster/Synergy agree that the prices are quite high for owner occupiers like the OP. The say that with hindsight perhaps they should have set up sinking funds which over time would have built up reserves to pay for large repair and maintenance bills which are now arising.

But they didn't.

Thanks - have contacted our local Dorset councillor and MP to see what can be done as it's not just us but many, many ex council private home owners landed with these astronomical bills out of the blue!!!

propertyrental

duplicate thread
https://forums.moneysavingexpert.com/discussion/6474854/aster-synergy-service-charges-replacement-costs-for-shared-use-of-sewagetp-by-ex-council-home-owners#latest

MJH3

propertyrental said:

duplicate thread
https://forums.moneysavingexpert.com/discussion/6474854/aster-synergy-service-charges-replacement-costs-for-shared-use-of-sewagetp-by-ex-council-home-owners#latest

advised to post on the house buying board but not sure that i agree with that we are not covered by Consumer Rights as we have no formal contract with Aster who took over the STP from Dorset Council but we have always paid a service charge for the use. The issue is that Aster have increased our yearly usage payments to £3,500 and billed us an estimated £21,000 for our share of its replacement.

Shall remove the duplicate thread - apologies but I'm new to all this