Curo criticised over steep service charge increases in Bath

Service charge increases spark resident backlash

Leaseholders in Bath have raised concerns over steep increases in service charges levied by housing association Curo. Callum Maddern, one of the residents, reported that his annual service charge rose from £1,300 to over £8,000, covering fire safety work and new windows. Maddern stated that he experienced "constant delays" in communication with Curo and resorted to selling possessions and taking loans to cover the unexpected costs.

Ken Pearson, another leaseholder, saw his sinking fund contributions jump from £124 to £1,767 for a new roof. Pearson took Curo to a tribunal over the increase but lost the case. Both residents criticised Curo for inadequate preparation and transparency regarding the financial impact of maintenance works.

Curo acknowledges communication failures

Andrew Snee, Director of Housing and Support at Curo, admitted that the organisation could have communicated the service charge increases more effectively. He attributed the rises to escalating costs and regulatory requirements but acknowledged residents' frustrations over the lack of clarity and timing of the charges.

Snee’s comments follow broader industry discussions about the balance between compliance with safety and maintenance standards and the financial burden placed on leaseholders.

Regulatory reforms on the horizon

The UK government is drafting legislation aimed at overhauling leasehold practices, including a proposed ban on leasehold for most new flats. The reforms would also introduce a right for leaseholders to request improvements, potentially reshaping how service charges and sinking funds are managed and communicated.

These changes come amid growing scrutiny of housing associations and property managers, with leaseholders calling for greater transparency and fairness in financial planning.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

For founders and operators in property management, housing associations, or social housing, this story highlights three risks: reputational damage from poor communication, financial strain on tenants due to sudden cost increases, and the pressure of incoming regulatory changes. Curo’s experience underscores the need for proactive disclosure and clearer financial planning to avoid disputes and maintain trust. The upcoming leasehold reforms could also create opportunities for startups offering compliance tools or platforms that simplify service charge transparency for both providers and residents.

Key takeaways

• Housing associations and property managers must prepare for stricter scrutiny of service charge transparency and communication.
• Sudden, large increases in service charges can create financial strain for leaseholders, risking reputational damage for providers.
• Regulatory changes to leasehold practices may soon require operators to adopt clearer financial planning and disclosure processes.

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