Misled and lied to on Service Charges

[KaiM]

I moved in to a Persimmon new build property in January 2023. I was told a service charge of £704 per annum upon reservation. I remember it saying 'estimated'. I have completed and moved in. When the Management company took over 4 months after we moved in (April 23), we then received the final bill £1064 (pro rated) which is a 130% increase on what they told us at reservation, year on year. Upon discussing it with other residents, Persimmon & the Management company have used the 2019 valuations when calculating the service charges and citing additional services for fire, health and safety regulations and inspections. They have refused to give me compensation as we only found out 4 months after moving in. Note that they did know of the increased service charges as residents who had moved in earlier and living on site in December 22 were advised of the increase. That was before exchange and completion at that point. Is there anything I can do to get compensation as I really feel misled here. I do not understand why they could not have told us of the increased service charges in December 22 before exchange but of course, they did not want to risk the sale. Saying 'estimated' service charges, I expect some change but not a 130% increase. It is unconscionable.

As you are disputing the charges, please request a breakdown of the service charge budget and an itemised list of the finalised charges to compare. Ask the questions and see what they are charging for, ask for copies of the invoices and see what % that the management company take as their own fee. Eg we charge 10%, I think 15% is average. We are often stuck with rising costs of our suppliers despite trying to negotiate the best prices for our tenants. Last year we were stung with huge charges for Gas and Elec (and had to pass on) that we didn't budget for months in advance as we couldn't forsee the steep increase.

Aha, this is super, Makes sense. Thanks!