Service Maintenance Charges on New Builds

SurveyGo2024

New Builds not stating all the charges relating to service charges and maintenance charges. A number of people very unhappy with these charges. Especially when  costs are so high .

RelievedSheff

The costs are made very clear when you purchase the property.

We were lucky and our estate has no "service charges" or "management company charges" but the reservation paperwork has a section where these would have been input had we got any.

kingstreet

I know many local authorities are badly affected by reductions in their central spending grant but adding properties to the council tax roll at typically £2k+ each p/a then not providing the same services as are enjoyed by other council tax payers is a bit rich, IMHO. That is the real reason we have service/estate charges on newbuild freehold homes.

PJBRFC

RelievedSheff said:

The costs are made very clear when you purchase the property.

We were lucky and our estate has no "service charges" or "management company charges" but the reservation paperwork has a section where these would have been input had we got any.

That may be the case for your estate but when we bought new in 2014 the charges weren't available, only a 'very rough' estimate. We'd been in 11 months before the actual charges were calculated. In the five years we lived there we weren't charged for the first two. Years four and five both had rises of £50+ over the previous years. £50 being an over 35% increase.

However you look at it, the charges are an unregulated con. 

BarelySentientAI

PJBRFC said:

RelievedSheff said:

The costs are made very clear when you purchase the property.

We were lucky and our estate has no "service charges" or "management company charges" but the reservation paperwork has a section where these would have been input had we got any.

That may be the case for your estate but when we bought new in 2014 the charges weren't available, only a 'very rough' estimate. We'd been in 11 months before the actual charges were calculated. In the five years we lived there we weren't charged for the first two. Years four and five both had rises of £50+ over the previous years. £50 being an over 35% increase.

However you look at it, the charges are an unregulated con. 

Unregulated - yes.  A con - no.

PJBRFC

BarelySentientAI said:

PJBRFC said:

RelievedSheff said:

The costs are made very clear when you purchase the property.

We were lucky and our estate has no "service charges" or "management company charges" but the reservation paperwork has a section where these would have been input had we got any.

That may be the case for your estate but when we bought new in 2014 the charges weren't available, only a 'very rough' estimate. We'd been in 11 months before the actual charges were calculated. In the five years we lived there we weren't charged for the first two. Years four and five both had rises of £50+ over the previous years. £50 being an over 35% increase.

However you look at it, the charges are an unregulated con. 

Unregulated - yes.  A con - no.

Having paid almost £1000 over three years for one small piece of grass to be cut, I personally think it's a con. Differing opinions are all good though, right? 

BarelySentientAI

PJBRFC said:

BarelySentientAI said:

PJBRFC said:

RelievedSheff said:

The costs are made very clear when you purchase the property.

We were lucky and our estate has no "service charges" or "management company charges" but the reservation paperwork has a section where these would have been input had we got any.

That may be the case for your estate but when we bought new in 2014 the charges weren't available, only a 'very rough' estimate. We'd been in 11 months before the actual charges were calculated. In the five years we lived there we weren't charged for the first two. Years four and five both had rises of £50+ over the previous years. £50 being an over 35% increase.

However you look at it, the charges are an unregulated con. 

Unregulated - yes.  A con - no.

Having paid almost £1000 over three years for one small piece of grass to be cut, I personally think it's a con. Differing opinions are all good though, right? 

Sure thing.  I just find discussions go better when things are a little less tabloid.  Unregulated service charges are a massive problem that need sorting out, but I wouldn't weaken a perfectly good argument with an over the top name.  I have the same comment when things have "tax" unnecessarily strapped on the end.

YMMV - some people think the headline-grabbing titles bring more attention.

chanz4

kingstreet said:

I know many local authorities are badly affected by reductions in their central spending grant but adding properties to the council tax roll at typically £2k+ each p/a then not providing the same services as are enjoyed by other council tax payers is a bit rich, IMHO. That is the real reason we have service/estate charges on newbuild freehold homes.

we had a newbuild paid same rate council tax and the estate fee on top bit of a joke for sure

RelievedSheff

chanz4 said:

kingstreet said:

I know many local authorities are badly affected by reductions in their central spending grant but adding properties to the council tax roll at typically £2k+ each p/a then not providing the same services as are enjoyed by other council tax payers is a bit rich, IMHO. That is the real reason we have service/estate charges on newbuild freehold homes.

we had a newbuild paid same rate council tax and the estate fee on top bit of a joke for sure

You chose to live there knowing there would be an extra charge.

GDB2222

People happily pay 10% or more over the odds to buy a new build house, but don’t complain about that, even though it costs them £10,000s. But, a couple of £100 a year for cutting the grass has them up in arms.

daveyjp

kingstreet said:

I know many local authorities are badly affected by reductions in their central spending grant but adding properties to the council tax roll at typically £2k+ each p/a then not providing the same services as are enjoyed by other council tax payers is a bit rich, IMHO. That is the real reason we have service/estate charges on newbuild freehold homes.

Some local authorities give the choice to developers to undertake developments with adoptable roads, drains, streetlights, verges etc.  Some are happy to do so, others don't and introduce local charging as developer saves money on the build and may then make good money on the service charges.