The South Leicestershire MP has written to the government on behalf of Leicestershire residents who have expressed widespread frustration with companies like FirstPort and The Land Trust, which manage private estates across the constituency. Key concerns include unreasonably high service charges, lack of accountability, and the absence of mechanisms for refunding overpaid fees.
Alberto has encouraged residents to take part in a survey that he recently launched on his website, aimed at gathering insights into the impact of land management companies on the community. The views expressed will, he says, inform his actions in holding property management companies accountable and evaluating the government’s future proposals on leaseholder reform.
Alberto backed accelerating the transition from leasehold to commonhold, allowing leaseholders to own and control their properties outright. He argues that legal and financial barriers to commonhold must be simplified, making it easier for leaseholders to convert.
The benefit of this transition would be that owners’ associations could choose to hire a property management company and, if necessary, fire them for overcharging or underperforming.
On the move to commonhold Mr Costa said: “This would create competition and force management companies to offer fair pricing. Under the leasehold system, freeholders often own the management company, meaning they profit from high service charges. In commonhold, owners can act in their own best interests, rather than being subject to a freeholder monopoly.”
Alberto is also calling for stronger oversight of property management companies, such as a compulsory code of conduct for property management firms to ensure fair practices and prevent exploitative fees. An independent watchdog too could oversee compliance, investigate malpractice, and ensure transparency in management fees.
While the MP for South Leicestershire has backed changes to the leasehold system, in his letter to the government Mr. Costa cautioned against creating “unnecessary bureaucracy that could slow progress or burden homeowners.”
Alberto also suggests that leaseholders should be able to call for open-market competitive tendering and transparency to prevent conflicts of interest within property management companies. He also proposes mechanisms to justify increases in communal energy bills and advocates for the introduction of a national benchmarking system for service charges, enabling residents to compare costs more easily.
Commenting on the issue, Mr. Costa stated, "The growing frustration among residents in my constituency cannot be ignored. The practices of some property management firms are deeply concerning, and it is time the government acted to ensure that leaseholders and homeowners are protected from unfair charges and mismanagement. These changes are crucial not only for my constituents but for homeowners across the country who are facing similar issues."
ENDS
Survey details here:
https://www.albertocosta.org.uk/campaigns/land-and-property-management-companies-have-your-say
