Residents in Somerset’s Cavalier Way, Wincanton, are up in arms over the “unreasonable” and “crazy hiked” service charge bills they have received from Residential Management Group (RMG). The new management company, which took over from Plymouth Block Management, has seen bills soar, with some residents facing increases of up to 479%.
One couple, Zoe and Chris Watts, were stunned to be hit with an annual invoice of £4209, a substantial increase from the previous year’s £870. Another resident was not exempt from the unprecedented surge, receiving a bill for a staggering £6999 in annual service charge fees.
MP Sarah Dyke intervened on behalf of the affected residents, securing a 28-day extension from RMG to provide some respite from the alarming charges. Residents have expressed concern over RMG’s attempt to evade the proper section 20 consultation process by justifying the charges as being for advance payment rather than planned work.
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Sarah Dyke has also raised questions regarding the reserves held on account, suggesting that the previous management may not have utilized the service charges paid as they should have. Leaseholders and residents are pressing for a fair and long-term solution to the RMG service charge predicament, emphasizing the need for equitable treatment and charges.
RMG has acknowledged the concerns raised and announced a pause in charges for 28 days, in addition to an openness towards discussing flexible payment plans. The management firm attributed the significant increase to the identification of longstanding issues such as health and safety concerns and overdue maintenance work, which necessitated the funding through the service charge, given the absence of reserve funds from the previous agent.
While RMG underscored its commitment to prioritizing health and safety-related work, it revealed plans for future consultations on additional issues, including new carpets and redecoration, with the assurance of providing leaseholders with the best value. The firm also pledged to credit any unspent funds back to leaseholders at the end of the financial year.
Plymouth Block Management, the previous managing agent, has not responded to requests for comment, leaving residents grappling with the financial burden imposed by the sudden and exorbitant service charge increases.