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Residents living on a new-build estate have combined forces to fight “extortionate” service charges they say are pricing them out of their homes.
Homeowners based at Peters Village, near Wouldham, claim their “management” fees have more than doubled over the past three years.
The 1,000-strong development on the River Medway was spearheaded by Trenport, who own the land but have sold parts to individual housing developers, of which there are five on the site – Bellway, Ashberry, Orbit, Hyde New Homes and Moat.
Meanwhile, Medway Valley Services Limited (MVSL) has been enlisted to provide certain “services” on-site not adopted by the council or maintained under service charges by the housebuilders.
But residents are confused as to what it is exactly they paying for and believe, in some instances, they have been paying charges and council tax for essentially the same things.
They have now clubbed together to get some answers. Matthew Clemens-Larry, who helped set up a resident’s association on their behalf, told KentOnline: “Because Trenport need to consult with a residents’ association, we can negotiate better as a collective.
“We could make decisions such as adopting services as some developments have done, and be less likely to be ignored.”
The group claims they have all received letters increasing their service charge – in some cases by more than 100 percent.
Emma Wark, 38, says she has been priced out of her own house since moving in three years ago.
“I am now paying an extra £300 a month to live in my own house,” she said.
Emma, who works as a client manager, is not sure what services she is actually paying for.
She claims part of her service charge is supposed to go towards lighting yet it is “pitch black everywhere”.
“You can’t see your hand in front of your face when you are walking down the pathway that leads to my house,” she added. “It’s a mugger’s paradise.”
Emma has also been left confused over who is collecting parts of her household waste.
She pays fees for the management company to collect “bulk waste” and recycling but says Urbaser already collect her bins on behalf of Tonbridge and Malling Council who she pays council tax to.
However, a spokesman for Orbit Homes said customers at Peters Village do not pay to have their bins emptied although they do apply “small provisions for “bulk waste removal” within its service charge.
This covers the removal of waste left on areas its maintain that would not be collected as part of standard council waste, it said.
At a packed first meeting of the newly formed residents’ association on February 19, frustrated neighbours came together to better understand the service charges they are paying.
Natalie Dodd, 31, lives in a one-bed new-build flat in Peters Village.
When she first moved in three years ago the charges were initially estimated at around £1,200, she says, but a recent letter quoted them as having increased to £2,500.
She explained: “They [Orbit Homes] have upped my service charge by 100 percent. It’s extortionate.”
The video game producer has looked into selling her flat as she said if the price goes up anymore she will no longer be able to afford it.
“I’m tired of it,” she added. “I don’t know if the next time I go to my letterbox there is going to be another letter asking me for more money.
“I don’t know how they are legally allowed to keep asking us for more money.
“We are in a cost-of-living crisis and this is the last thing we need.”
Natalie previously asked Orbit Homes for a breakdown of the costs but says she has not received an answer.
Several residents have also received similar responses to their complaints about the charge and claim Orbit told them £2500 was an “error in budgeting” and the final amount will “reduce significantly”.
An Orbit Homes spokesman informed KentOnline MVSL is responsible for managing the wider Peters Village development and charge Orbit a proportion of costs to manage the estate amenity areas which are included in its “management company charges”.
He added: “Our service charge budget for 2024/2025 includes an annual estimate for these management company charges.
“This estimate was based on previous costs passed to us by MVSL, however the costs we were provided were based on the total for a three-year period.
“We are therefore reviewing our estimate to ensure it covers the costs for one year only, and we are in contact with a number of Orbit customers who will receive a revised letter shortly.”
MVSL told KentOnline it was a non-profit organisation that looked after and maintained areas within Peters Village which were not adopted by Kent County Council, or maintained under service charges by the housebuilders.
It said MVSL charges residents an annual estates charge not a service charge, which is clearly set out in a deed of covenant that all purchasers sign.
Their spokesman explained: “Upon request MVSL will supply residents with the budget costs, actual costs and reasons for variances.
“MVSL are not involved with the individual housebuilder plots, so are not responsible for bin collections, general maintenance and other service activities, and none of the estate charges relate to these.”
Responding to suggestions the charges had doubled recently, the spokesman added: “The budget for MVSL residents has actually reduced from £449.02 (including VAT) per homeowner in 2023 to £424.56 (including VAT) in 2024.”
“This is a decrease of 5.4% so definitely not the 100% increase you refer to.”
Trenport, who won permission for its £50m riverside community which promised shops, a community hall and a medical centre in 2014, did not respond to a request for comment.
Service charges – or estate management fees – for homeowners living in new-build properties are commonplace.
But the practice is contentious, with residents paying for the upkeep of communal areas of estates, on top of their council tax, often finding they have little control over how much they're charged or where the cash goes.
Recent figures from HomeOwners Alliance, a group which champions homeowners, estimate that more than one million owners of newly built properties are now subject to such fees.
