'Fleecehold' firms criticised by MPs over rising costs

DEVON MPs have called for action to regulate companies involved in 'fleecehold' property management agreements.

- by GUY HENDERSON

The demand comes after MPs said they had been inundated with complaints from constituents forced to pay inflated service charges for properties they lease.

In one case a woman living in a small retirement community in Sidmouth is paying an extra insurance premium to guard against terrorism.

One of the companies heavily criticised during the debate was FirstPort, which manages more than 300,000 homes across the country and has an office in Exeter.

A company spokesman said FirstPort supported moves towards a new framework of regulations for the industry.

The debate in Westminster Hall was led by South Devon Liberal Democrat MP Caroline Voaden, who said she wanted the Government to bring in more regulation and new legislation.

"The issues raised repeatedly by constituents cause not just frustration, but in some cases serious distress," she said. "The situation for both leaseholders and freeholders has become so bad that such estates are now commonly referred to as 'fleecehold' instead of leasehold.

"Every type of resident-leaseholders and freeholders-is affected by rogue practices. Residents are being ignored, dismissed, intimidated and, frankly, fleeced by management companies that are not subject to any kind of regulation."