HOMEOWNERS living on a newbuild estate are being charged £9,000 a year for the grass to be cut and for terrorism insurance.
Karen Stokes said she and fellow Waterside Gardens residents “feel fleeced” by private management company FirstPort.
They are footing the bill for maintenance work on a small balancing pond near the freehold estate in Wigston, Leicestershire – which Karen describes as like a “second council tax“.
The company is responsible for cutting grass at the pond twice a year in a bid to prevent flooding, as well as maintaining a bordering fence.
The latest annual bill came to £9,031 in total – equivalent to £75 per household.
It also includes contributions to terrorism insurance.
Karen, 65, and partner Tony bought their home eight years ago and didn’t receive a bill for the first two years.
But by the third year, FirstPort was asking for £117.23 per household.
She told the BBC: “But they hadn’t even been on site and done any work at the pond.”
Karen explained that all 120 homes on the estate challenged the bill and were able to negotiate the lower fee.
“We pay £9,000 a year to have the grass cut twice a year, which is an awful lot of money,” she said.
A breakdown of this year’s bill shows just £1,158 of the fee went on maintenance, according to the BBC.
Freehold estates are private or mixed-tenure estates where, unlike other residential areas, shared areas and facilities, such as roads, play areas and open spaces, are not owned or looked after by the local authority.
The model – nicknamed “fleecehold” by affected residents – is becoming more common as underfunded local authorities look for ways to avoid cutting costs.
An estimated 1.7million homes are managed as part of a private estate in the UK.
While 80% of new homes sold by this country’s 11 biggest builders are now subject to estate management charges.
The rest went on management fees, except for £14 used for terrorism insurance.
Karen joked that the area is a “real hotbed” of terrorism.
However, FirstPort told the BBC it is “common practice” to charge residents for such insurance.
A spokesperson said it is “an important consideration when placing insurance across a managed development”, even if the likelihood of terrorism “may seem remote”.
However, Sebastian O’Kelly, director of the Leasehold Knowledge Partnership charity, told the broadcaster: “I can’t see any reason why there would be terrorism insurance on this pond, except to make money for the managing company who placed the contract.”
Karen now spends weeks negotiating the charges on behalf of the whole estate.
Former parish councillor Pete Murray set up a committee to help residents struggling to deal with FirstPort.
However, he said the firm stopped engaging with the group.
But, as the 59-year-old found out for himself in 2021, FirstPort also charges anyone who sells a property on an estate it manages.
He had to fork out £2,000 to cover the cost of providing evidence of the managed areas and insurance to be sent to the buyer’s solicitor when selling his home in Fernwood, he says.
More than 30 MPs wrote to the company’s managing director last month after receiving complaints from constituents.
FirstPort told the BBC, service charges “have risen across our entire industry”, adding that its fees are “reviewed regularly”.
The Sun has contacted FirstPort for further comment.
Do you live on a freehold estate? Email ryan.merrifield@thesun.co.uk
