MPs call for meeting with UK’s largest leasehold property manager over ‘rip-off’ service charges

It said: “There have been particular concerns raised about the charges your company is levying for insurance and the lack of transparency around the role your internal insurance brokerage, Knight Square, plays.”

MPs said residents reported that the standards of service they receive from FirstPort have “consistently been poor and do not justify the aggressive increases in service charges”.

“We have heard repeated stories of repairs not being adequately carried out and/or FirstPort being slow to act when repairs are required,” they wrote.

They added that communication has also been “poor” and “there is little consultation before major works are carried out, with residents’ wishes often ignored”. 

The MPs, representing constituencies from across England including in London, Plymouth, Sheffield and Truro, have asked Mr King to “come to parliament and meet with us to explain your company’s conduct and what you intend to do to address the consistent complaints we receive about you”. 

David Pinto-Duschinsky, MP for Hendon, said: “My constituents are fed up with the high service charges and the shoddy service offered by managing agents like FirstPort. 

“Enough is enough. We will hold these companies to account and fight for our residents to get a better deal. 

“Myself and my Labour Party colleagues are proud to support and build upon the work the government is doing on leasehold, and will continue to do our bit to help reform the broken leasehold system.”

Rachel Blake, MP for Cities of London and Westminster, said that the last Conservative government “failed to take the plight of leaseholders seriously, watering down proposed reforms and failing to address the issue of poor managing agents”.

She said: “My constituents, and those up and down the country, are the ones paying the cost. I am proud that the Labour government recognises the gravity of this issue, with a Leasehold and Commonhold Reform Bill included in this year’s King’s Speech.

“I will be pushing for future legislation which ensures that managing agents are accountable to residents and have a professional framework fit for the 21st century.”

A spokesperson for FirstPort said: “We are delighted to have the opportunity to meet with MPs to discuss the many changes and challenges in our industry, and how FirstPort is working to meet the needs and expectations of our residents against a backdrop of rapidly evolving regulation and economic change. 

“The management of leasehold property is a complex task, with rapidly evolving regulations and requirements. As the largest property management company in the UK, serving over one million customers in more than 6,000 developments, we take our responsibilities to customers very seriously, and we work hard to meet their needs and expectations. 

“We look forward to meeting with the MPs, to listen to and address the issues raised.”

The letter comes from MPs drawn from a larger group of more than 50 Labour MPs who have assembled to “hold managing agents to account and fight for residents against excessive service charge rises and the poor-quality service freeholders receive”. 

They said the letter is the first step in a wider campaign to end the “exploitation of leaseholders by managing agents”.

In the King’s Speech, the Labour government pledged to publish draft legislation on leasehold and commonhold reform, and ban the sale of new leasehold flats so commonhold becomes the default tenure.