Residents of a housing block have expressed their frustration after being charged for a nonexistent lift for two consecutive years.
Tenants of Barham Park in Wembley, located in north-west London, reached out to the BBC following a report that Notting Hill Genesis mistakenly sent notices regarding rent and service charge increases of up to 50%.
The residents of Barham Park noted that their building only features stairs, yet each tenant has been billed approximately £200 each year for a lift that doesn’t exist.
The housing association issued an apology, acknowledging that certain expenses for Barham Park were “incorrectly apportioned,” promising to provide revised estimates in the near future.
Additionally, they expressed regret over the concerns raised by tenants of another complex, where service charges are set to more than double after previous year’s costs were underestimated by over £77,000, according to documents reviewed by the BBC.
These miscalculations have drawn condemnation, with the Social Housing Action Campaign (SHAC) arguing that the issues of overcharging and errors made by housing associations represent a scandal comparable to the Post Office scandal.
An anonymous employee from a managing agent, who collaborates with Notting Hill Genesis at one of their sites, told the BBC, “I find the finance systems lacking” due to having observed “duplications in contractor spending.” They added that there is often a high turnover of junior staff and that “employees require more managerial support.”
Angela Tanner, a Barham Park resident living with her partner Rosemary, remarked: “This block simply does not have a lift.”
“We’ve repeatedly asked for a refund, yet Notting Hill Genesis has not processed that refund.”
“This year, we’re still paying about £200 for a nonexistent lift. It’s like trying to break down a brick wall.”
Ms. Tanner noted that their service charges have nearly doubled in the past year.
“It’s quite challenging for me as a resident to comprehend what I’m being billed for,” she stated.
“There’s also a lack of clarity in the charges when they are grouped together. The reasoning doesn’t make sense to me.”
Notting Hill Genesis acknowledged that certain expenses at Barham Park had been “incorrectly apportioned,” resulting in some residents receiving inaccurate service charge invoices.
“We have communicated this to residents and will be sending out new invoices detailing the costs they will owe, along with refunds where necessary,” a spokesperson indicated.
“We understand the repercussions this has had for residents and sincerely apologize for the resulting distress.”
In response to the anonymous managing agent’s comments, the spokesperson from Notting Hill Genesis noted, “We are in the process of adopting a new operational model that will provide our local staff with enhanced support from specialized teams with expertise in areas such as service charges.”
“We are also nearing the implementation of a new financial system that will enhance how we manage essential information and, consequently, improve the services we offer to residents.”
Meanwhile, tenants at Geneva Court, another Notting Hill Genesis property in Hendon, north London, are facing service charge increases exceeding 100%—the largest hike observed in over two decades.
Documents shared with the BBC reveal that the building’s expenditures for 2023-2024 amounted to £126,656 while only budgeting £49,640, resulting in a shortfall of £77,015.
Resident Manuel Fernandez expressed, “Why should I suffer financially for someone else’s budgeting error regarding a 22-year-old building?”
“Examining historical service charges reveals that the electricity rates have remained unchanged. That’s a matter for you, not for me.”
Mr. Fernandez added, “I’m both physically and mentally exhausted. This isn’t my first encounter with service charge issues. I’ve reached out to them multiple times regarding errors, but they have never offered us a refund.”
“Working as a gas engineer, my hours are long and demanding. I leave home at 6 AM and return around 7 or 8 PM.”
“I now have to inform my family that we can’t go out because we’ll need to pay an extra £300 monthly.”
Notting Hill Genesis acknowledged that consistent with the terms of the tenancy or leasehold agreement and normal service charge practices, they review actual expenditures against estimated amounts each year and then adjust charges accordingly or provide credits.
“Unfortunately, at Geneva Court, the budget was underestimated, and we now have to recover the actual costs of those services,” a spokesperson explained.
“We recognize that this situation has affected residents and we apologize for the understandable worries this has generated.”
SHAC reported a surge of complaints from tenants nationwide about “numerous errors, inflated charges, and unexplained fees.”
Co-founder Suzanne Muna stated, “There are individuals paying directly who find themselves needing to come up with increasingly large sums to meet their landlords’ charges.”
“There are also numerous tenants whose service costs are covered through public funding, meaning the general public is inadvertently supporting these exorbitant, sometimes deceitful fees.”
The organization is urging the government to establish a system akin to the deposit protection scheme to enable residents to contest service charges.
“We believe this issue is as alarming as the Post Office scandal, as tenants and residents have been highlighting these problems for years, but landlords and the government have turned a blind eye.”
The National Audit Office commented, “We have received correspondence from SHAC and are reviewing it carefully in relation to our mission to audit government expenditures.”
The Ministry of Housing, Communities, and Local Government stated, “We plan to consult this year on implementing measures aimed at enhancing the transparency of service charges, ensuring that leaseholders and tenants have better mechanisms to hold their landlords accountable.”