Leaseholders at Spring View, a residential development in Peterborough, have reported significant increases in insurance charges over recent years, underscoring the financial pressures faced by property owners amidst rising premiums.
Since 2016, leaseholders have observed annual insurance costs escalate from approximately £14,000 to £93,000 in 2023. Michael Ferguson, who chairs the Spring View Apartment Group on the Vista Estate, noted that insurance alone now accounts for over £1,000 per apartment annually.
“It doesn’t seem fair, and premiums just keep going up,” he said in a report from the BBC.
Premier Estates, the management company responsible for the development and appointed by Morris Homes, attributed the increases to market conditions and said all charges are reviewed regularly to ensure value.
It anticipates a decrease in the overall service charge for the current financial year, though residents have yet to receive final figures.
Beyond insurance, leaseholders are grappling with rising service charges and unresolved maintenance issues. Another resident raised concerns about a damaged boundary wall in her garden.
The wall, separating the resident’s property from a nearby railway line, began to collapse four years ago. Despite notifying Morris Homes and Premier Estates, the resident said that no permanent solution has been implemented, leaving her garden partially unusable.
The resident said she had paid solicitors to advocate on her behalf after years of little progress.
Premier Estates countered that the boundary issue was investigated promptly and that it is working with Morris Homes, Network Rail, and local authorities to resolve the matter. A spokesperson for Morris Homes added that the health and safety of residents remains a priority and assured that the issue will be resolved at no cost to residents.
For some leaseholders, rising costs have impacted their ability to sell their properties. Another resident said that he listed his flat in December 2023 but removed it from the market in September 2024 after failing to secure any viewings. He said the escalating charges have constrained his finances and affected his health.
Premier Estates said it issues estimated service charges ahead of each financial year and is working to address residents’ concerns while maintaining the property’s safety and infrastructure. It also noted that the interim measures for the boundary wall were implemented with support from Morris Homes.
Morris Homes, on its end, stated that its priority is to ensure the long-term safety of residents while thoroughly investigating the cause of the wall's issues.
“Our commitment remains to fully resolve these issues at no cost to residents,” a spokesperson said, adding that residents will be kept informed as work progresses.
A recent report from CompareNI.com reveals a 29% increase in average premiums across the UK, from £210 in the third quarter of 2023 to £271 in the same period of 2024. Northern Ireland emerged as the most expensive region, comfortably ahead of London and others.
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