Leaseholders dispute £200,000 maintenance bill

Leaseholders living in a block of flats have reported their management company to the housing ombudsman in a dispute over maintenance costs.

People living in Park View Court in Kenton, Newcastle, said RMG wanted to charge them £200,000 for repairs, which they believe should have been covered by a monthly fee they already pay for.

Resident Neil Scandrett said the fee had gone up to more than £123 "and they just haven't done any repair work".

RMG disputed Park View Court had fallen into a state of disrepair and said service costs were audited, with any underspend returned.

People living in the flats said there had been overflowing gutters, dead rats, damp, and rotting and broken fences.

"The whole place just looks tired," Mr Scandrett said.

"Now they're saying, because the place looks tired, they want to charge us £200,000 to do necessary repairs.

"But we've been paying maintenance since 2002. Where's this money gone?"

The residents also said there had been an "absolutely terrifying" rat infestation.

Householder Julie Moody said her neighbour had been "distressed to think that she had rats in her house".

"We couldn't get RMG to take responsibility at the time," she said.

"It's not what you pay huge management charges for.

"We can't see that we get anything for the money that we pay."

RMG said pest issues following "misuse of the bin store" had been resolved.

RMG said the costs of managing the buildings had risen but were audited by an external company "to ensure they are correct".

"Customers receive a full breakdown of this and any underspend on is returned to them," a spokesperson said.

The company said it was "unaware of any current issues of damp" and its site inspections showed regular maintenance was taking place.

The external work now required, estimated to cost about £200,000, had been "suggested over several years, but often delayed with the Residents' Association raising concerns over costs", the spokesperson said.

The work was "essential, but we will only proceed after full consultation with the customers, who have the right to nominate contractors and scrutinise the quotes", they added.

Leader of the residents' group, Linda Duval, said her property was her investment.

"I didn't realise at the time that the service charge would cripple me," she said.

"When I become a state pensioner, which is not going to be that long, the service charge is going to be more than a mortgage."

The leaseholders' MP, Labour's Catherine McKinnell, said the issue was widespread.

"A lot of residents are having real difficulty with management companies that run their properties," she said.

"There's no accountability, no transparency about how money is spent.

"As a government, we really want to prioritise putting the power back into the hands of residents, who can have much greater say in how things are being managed."