'Our service charge has doubled in four years'
Original Article Summary
Residents on a new housing development say the reasons driving the rising cost are not transparent.
Investor Analysis
Residents at Marleigh Park, Cambridge report service charges more than doubling from £150 to £356.60 annually in four years, highlighting the 'fleecehold' issue now affecting ~80% of UK new-build homes. Government reform proposals are underway but no legislation yet restricts charge increases.
Investor Relevance
Investors acquiring new-build freehold or leasehold properties with estate management charges face an underappreciated and unregulated recurring cost that can compress net yields, reduce tenant satisfaction, and impair resale value. The absence of legislative caps means charges can rise materially post-acquisition, making due diligence on management company track records and charge structures essential before purchase.
Original Source:
BBC NewsStay Updated
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