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'Our service charge has doubled in four years'

Emma HowgegoCambridgeshire political reporter
Emma Howgego/BBC Two men and two women sit at a green picnic bench. In the background are raised beds, wild flowers and trees.Emma Howgego/BBC
Residents of the Marleigh estate in Cambridge say they think the rises are unfair and not transparent

People living in a new housing estate in a city say their service charge has more than doubled in the four years since they have had their homes.

Residents of Marleigh Park, Cambridge, say they were told service charges would be £150 per annum when they reserved their properties in 2022, but the figure has risen to £356.60 for the current financial year.

Service charges, which have been previously referred to as "fleecehold" by the government, are fees imposed on homeowners in new developments.

Residents in Marleigh added they do not think the fee is value for money.

The Land Trust, the estate's management which controls the service charge, says it is now providing extra services that cost more money.

Emma Howgego/BBC A general view of a new estate. It shows three-storey buildings with flags saying "Marleigh Park" on them. In the foreground is a red cycle path and grey footpath. Emma Howgego/BBC
The Marleigh estate will eventually have more than 1,300 homes

Traditionally roads, public spaces and allotments are managed by local councils.

Over the past two decades it has become more common for local authorities not to take them on and for the housing developer to pay for maintenance on new estates.

The developer often then sets up a management company and asks new residents to pay an annual service charge to cover the costs of maintenance services.

According to the Competition and Markets Authority (CMA) about 80% of new build homes in the UK now come with estate management charges.

Charges are supposed to be fair, but there is no legislation to prevent large rises. This has lead to the term "fleecehold" being coined by some campaigners and government officials to describe the fees.

Emma Howgego/BBC A woman wears a white and black stripped top. She has chin length blonde hair and glasses. In the background are some overgrown allotment plots. Emma Howgego/BBC
Cathie Jeannott says they were "shocked" when they were told the allotments would cost up to £900 per year to rent

In Marleigh, the charges are used to pay for services such as maintaining green spaces, playgrounds and its community centre.

This year, residents have been told the charges are being used to provide new allotments. These are available to rent to residents and cost from £389 to £910.

Cathie Jeannott, who lives in Marleigh, says she was "speechless" when the prices of the allotments were released.

"It's more than 10 times the price" of council allotments, she says, adding there was no consultation on the sizes or prices of the plots.

Cambridge City Council told the BBC its allotment prices range from £28 to £84 per year.

Residents of Marleigh now worry the cost of maintenance will fall to all households, with almost £23,000 added to this year's budget.

Emma Howgego/BBC A brown-panelled building with the word "Allotments" written on the front. There is a grey block paved area to the front with greenery beyond that. Emma Howgego/BBC
The management company says the higher allotment charges are due to a new building being provided

"We are happy to pay [a service charge], says Ofelya Gyozakyan, who lives in Marleigh.

"We are of course getting some benefit from it," she adds.

"The question is the level we are paying and the rate it is increasing."

"We also don't know if they're trying to get the best service for the cheapest price or how the money is being managed," she says.

Emma Howgego/BBC A man and two women point to small squares in the pavement which look like drain covers. They are standing in front of a cafe. Emma Howgego/BBC
Fountains that are situated in holes under these paving slabs are "hardly ever on", residents say

Marleigh Park is being developed by The Hill Group, who also plan to develop new housing across the road on the site of Cambridge Airport.

The Hill Group said the rise in service charges were, in part, down to the employment of an additional full-time community officer and increased community support.

"This was decided upon following resident feedback and engagement with the Residents Association," it added.

"Marleigh Park will also benefit from an expanded sports pitch and allotment provision. Additional services need to be paid for, so the estate charge would increase accordingly," the company said.

Emma Howgego/BBC A woman stares at the camera, she wears a blue top and has long dark hair. In the background is a car park and green treesEmma Howgego/BBC
Ofelya Gyozakyan says charges should be "fair" and doesn't know if residents were getting value for money

In response to the allotment prices, The Land Trust says it "understands that the costs are higher than other allotments available in the surrounding area".

"This is because the allotment plot cost includes the maintenance and running of the brand new, allotment building.

"The cost per square metre has been calculated using all anticipated costs for the operation, including administration," the trust adds.

In December, the government announced it is seeking to reform the way management companies can operate.

It says it wants to "make it easier to challenge unreasonable bills" and allow residents greater control over the management of housing estates.

It added there are also proposals to make it mandatory for local authorities to take on certain facilities.

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