Homeowners in Newport are voicing frustration after receiving service charge bills exceeding £3,000 for the upkeep of their apartment block.
The charges, set by property management company FirstPort, have surged significantly in recent years, leaving many residents struggling to cover the costs.
Ben Murphy, a 29-year-old maths teacher, has seen his service charge rise by 262% since 2020. For 2025, the fee stands at £3,379, making it increasingly difficult for him to manage his finances.
Many leaseholders are required to pay annual service charges for expenses such as building insurance and communal area maintenance, but some feel they are receiving little in return for the high costs.
Murphy described the charges as a constant financial burden, explaining that instead of saving for holidays or moving out, his focus remains on paying the escalating fees.
Last year, residents were hit with an additional unexpected bill, bringing his total service charge to £4,000. Despite contacting FirstPort for clarity, he claims that little explanation was provided on how the funds were being allocated.
Another resident, Dan Willis, 28, echoed these concerns. He revealed that his service charges in 2024 exceeded his annual mortgage payments, forcing him and his wife to borrow money to cover the costs.
When trying to sell their flat, they initially received interest from multiple buyers, but nearly all withdrew after learning about the service charges.
FirstPort, which manages 1,700 residential developments across the UK, has faced criticism from homeowners in various locations.
The company attributes the rising costs to increased insurance and electricity prices. It states that each year, budgets are shared with homeowners in advance, but external factors have led to price hikes.
However, the current year’s budget for the Newport development is reportedly lower than the previous year.
Concerns over service charges are not limited to Newport. At Victoria Wharf in Cardiff Bay, also managed by FirstPort, residents are actively working to remove the company and take control through a Residents Management Company (RMC).
Many leaseholders have faced significant cost increases since 2019, with building insurance fees skyrocketing, largely due to the impact of the Grenfell tragedy. Collectively, the residents are now paying over £500,000 to FirstPort for insurance.
Peter Larwood, a resident of six years, believes that homeowners should have more control over how their money is spent.
He supports the push for an RMC, arguing that it would offer greater transparency and ensure leaseholders have a direct say in financial decisions affecting their homes.
In response to growing concerns, the UK Labour government has announced plans to ban new leaseholds and introduce measures to protect leaseholders from poor management and unfair charges.
The reforms aim to make it easier for homeowners to influence how their developments are managed.
Property litigation expert Simon Care believes that while leaseholds are not inherently problematic, there is a need for better regulation.
He suggests increased scrutiny of service providers to ensure fair pricing, competitive building insurance rates, and clear guidelines on service charge allocations.
With service charges continuing to rise, homeowners across the UK are demanding greater transparency and stronger protections to prevent excessive fees from placing further financial strain on leaseholders.
