Independent panel finds Peabody Trust overcharged leaseholders

The Peabody Trust has been closely criticised for overcharging leaseholders by an unbiased panel of residents tasked with scrutinising the UK housing affiliation’s interactions with tenants and householders.

The Resident Scrutiny Panel for Peabody, the UK’s third-largest housing affiliation liable for 104,000 houses, issued a report in June that highlighted severe points in how Peabody utilized service prices.

The panel, which final yr polled 2,271 residents on their views about service prices, discovered 87 per cent of respondents considered these prices as unreasonable. Nearly two-thirds of residents who queried the fees discovered they’d been overcharged.

The panel, which additionally held talks with residents’ associations, stated the dimensions of service cost errors it uncovered was “shocking” and triggered some residents to query whether or not the “apparent lack of checks left the system open to fraud”.

Peabody stated it was “sorry things were not good enough before” and that it had “implemented measures to improve the scrutiny and accuracy of our service charges”.

The report has not been printed publicly, however a duplicate was leaked to the Social Housing Action Campaign, a community that lobbies for higher circumstances for residents.

The marketing campaign group stated: “It is high time that government legislated and regulated this area of operation.

People should only be paying for services they receive. They should be consulted before major spending decisions that they will then have to fund.”

Service prices are an enormous problem for tens of millions of residents throughout the UK who’re required to pay the charges to the final word proprietor of their houses for providers together with repairs, gardening, cleansing and insurance coverage.

Rapid will increase to service prices have been additionally criticised by Peabody residents. The chair of 1 Peabody residents’ affiliation informed the panel their service cost had elevated 180 per cent in 13 years, in opposition to a 43 per cent rise in inflation over the identical interval.

Other residents stated their service prices had greater than doubled in 5 years or fewer. “It feels like daylight robbery,” one Peabody resident informed the panel.

When residents efficiently challenged Peabody concerning the overcharging, the usual response from the housing affiliation was accountable it on an “admin error” and problem a refund, the panel discovered.

But acquiring a refund usually took months or years, creating “considerable stress” for residents and employees, in addition to affecting their well being.

Residents have been essential of the truth that Peabody had no incentive to confirm the work carried out by exterior contractors or the appropriateness of the fees incurred. One resident stated he had began changing lightbulbs in communal areas himself to keep away from a £120 cost from a contractor.

Peabody’s leasehold collections division, which chases residents for unpaid charges, had a default coverage of sending standardised threatening letters to residents. This occurred even when Peabody’s property accounts staff, which handles queries about service prices, had agreed that some residents didn’t must pay all prices till their dispute was settled.

The panel was additionally informed by members of the accounts staff that it was “grossly understaffed” with 12 staff coping with 66,000 properties. The leasehold collections staff in distinction had 100 employees. Peabody disputed that there have been solely 12 employees concerned, saying that there have been groups aside from property accounts coping with service prices.

Peabody has been served with 15 suggestions by the panel, together with altering the property accounts staff’s main focus to accuracy as a substitute of earnings maximisation.

Peabody’s administration staff stated in response to the panel that it took the suggestions “extremely seriously” and would try to implement most of them.

The housing affiliation, which is because of meet the panel this month, informed the Financial Times: “We know that improvements need to be made to both the way service charges are collected and in how we deal with and answer customer queries about them.

“Errors and inconsistencies are incredibly frustrating for residents and we have been working hard to improve our processes, communication and services both before and since this research was undertaken last year.”

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