Weston Residents Triumph in Service Charge Dispute with Curo

Nine residents of a shared-ownership block in Weston-super-Mare have secured a legal victory against their housing provider, Curo, following a dispute over excessive service charges. The monthly fees for the Coombe Lodge property surged from approximately £70 to more than £300, prompting the families to take the issue to a tribunal.

Curo has since agreed to cap the charge at just over £100 per month, and the residents will be reimbursed for the excess amounts paid during the period of dispute. A spokesperson for the housing association stated that the reductions were agreed upon prior to the tribunal hearing, emphasizing a commitment to preventing unexpected financial burdens on leaseholders while maintaining essential fire safety standards.

Alan Rice, representing Weston Housing Action, described the residents’ reaction as “ecstatic.” He noted that many had doubted they would succeed, but their persistence yielded the desired outcome. Rice criticized the initial hike as devastating for people sold the homes as affordable, arguing that the sudden cost increase undermined that promise.

Curo attributed the original charge increase primarily to contributions toward the building’s sinking fund, which functions as a long-term savings account for major maintenance costs. The provider acknowledged that owning a flat in a block involves maintenance expenses that can be shocking when significant work is required, but expressed hope for continued constructive dialogue with the residents.

The case highlights broader concerns among leaseholders, as there is currently no statutory limit on how much service charges can rise. Although the Leasehold and Freehold Reform Act of 2024 aims to mandate full cost breakdowns and allow leaseholders to review charges from the past six years, it has not yet been fully implemented.

In a related development, Samantha Young, a resident in a Curo-managed block in Twerton, Bath, reported that her annual service charge jumped from £990 to over £6,000. Young described the amount as “astronomical” and unaffordable, comparing it to costs for luxury properties in central London. Curo confirmed it is holding ongoing discussions with Young to resolve her specific situation.