Pensioners 'held hostage' by disgraceful 21pc hike in retirement flat charges

Elderly residents of a seafront retirement complex in Llandudno have been left feeling they are being held to ransom over an 18 to 21 per cent increase in their monthly service charges, with one RAF veteran branding the decision an absolute disgrace.

Peter Thompson, 77, who owns a flat at Cwrt Sant Tudno on Clarence Road, said he and his neighbours were shocked to receive notice of the imminent rise in their monthly bills, which will hit those on fixed incomes particularly hard.

What is behind the steep rise in charges at Cwrt Sant Tudno?

Mr Thompson, a father and grandfather originally from Llanrwst, said his own monthly bill had risen from £808.69 to £957.53, an increase of £148.84. The apartments are managed by First Port, an independent later living development provider offering assisted services to residents who require them.

Speaking to the Local Democracy Reporting Service, Mr Thompson said: Residents have little choice in this matter and feel they are being held hostage by this decision. Being on fixed incomes, many will struggle to find the extra sums demanded.

I am fortunate that I can find a way to pay the extra but some here will suffer to do so. It is absolutely disgraceful.

What happened at the residents' meeting with First Port?

At a meeting on August 20, around 40 residents raised their concerns with a representative from First Port. Mr Thompson described the gathering as rather stormy, with many others unable to attend because of the short notice given.

He said: The upshot of it all is that the property has been underfunded for a decade and more. In order to update costs of staffing, etc and to put funds towards a contingency fund for things like window replacement, furniture replacement, new carpeting and lift maintenance, we, the current residents, must pay because of the negligence of others.

I questioned why First Port did not finance these deficits and pay to balance the new budget instead of off-loading it on all in these sudden huge increases in monthly fees.

Mr Thompson, an RAF veteran and former civilian police trainer who returned to the UK after living in America following the death of his wife, bought his flat for about £140,000 and has lived there for 14 months.

He also revealed he had put in writing his query as to why the contingency reserve had doubled from £20,000 to £40,000, why the communal cleaning area charge had gone up from £1,800 to £4,800, and why the housekeeping budget was up from £26,968 to £41,000, while acknowledging that the housekeepers were doing an excellent job.

What does First Port say about the increased charges?

A spokesperson for the property management company said: We are committed to providing value for money for home-owners, and service charges are set to reflect only the actual costs of managing and maintaining the development and the day-to-day services that help make Cwrt Sant Tudno a safe, well-maintained and enjoyable place to live.

A residents' meeting was recently held to consult home-owners on the budget for the forthcoming year, providing them with a valuable opportunity to share their views and ask questions.

During the meeting, we explained that the proposed budget reflects a detailed review of current expenditure and anticipated future costs across the development, including staffing, day-to-day services and increased contributions towards reserve funds for future major works.

These include the resident-requested window replacement work as well as the lift refurbishment, helping to ensure the continued provision of a reliable service that many residents depend upon.

The company also noted that the staffing budget had been reviewed to better reflect actual operating costs and avoid deficits arising from under-budgeting in previous years. The rise in the communal cleaning budget was said to represent a reallocation of costs, rather than a significant increase in cleaning provision.

The reserve fund, which is built up through service charge contributions and held separately for the development to help fund future work and projects, was also being accumulated in anticipation of planned improvements. It added that direct debit payment arrangements were available to help residents.

For the 66 apartments in the complex, the question remains whether those who have saved and planned for their retirement should be forced to foot the bill for years of what Mr Thompson called absolutely terrible budgeting.