'Cowboy operator' RMG in crosshairs as thousands left frustrated at service charges
Bury MP James Frith says property management company - owned by housing association Places For People - is 'riding roughshod' over those expecting a good quality place to live
An MP has branded controversial property management firm RMG a “cowboy operator” after it was accused of neglect, over-charging and poor communication by leaseholders at two developments in his constituency.
Bury North MP James Frith said RMG is “riding roughshod” over his constituents at Wharfside apartments and Broadoaks, two developments where RMG was property manager.
Frith said he had no response from RMG when he raised concerns with the company, owned by housing association Places for People, and he is the latest in a long-line of complainants as MPs across the country look to delve into how the firm is operating.
RMG was managing agent for Broadoaks from 2005 until October 2024, under the direction of The Meadows (Fairfield Drive Bury) Management Company Limited. By law, directors have to be leaseholders of the development while RMG charges a management fee.
Broadoaks leaseholders say gutters were left in a poor state despite a four-figure cleaning bill, they were charged between £125 and £290 for replacement lightbulbs, an external door costing £5,750 was badly fitted and could have been installed for a quarter of that, and roof repairs costing £32,000 were recommended when a spend of £2,000 would have sufficed.
They further complain that consultation over major works was not carried out correctly and that they have been sent only pro forma estimates for work when they requested invoices.
“Over the years I’ve been there you can complain about stuff and nothing ever gets done,” said Edward Hall, who has lived at Broadoaks since 2008.
“Being in the building industry, I see things day in day out. But there’s no response. If you have an issue it’s just blanked. You don’t even get an acknowledgement.”
Another leaseholder, Bernadette Mulligan, said she was “ashamed” by the state of the building, with “everything broken or littered despite the lovely, hard-working people who live there”.
She added: “RMG are neglectful, they bully people, they overcharge. They threaten people with debt collectors if they don’t do what they want.”
RMG disputes the Broadoaks leaseholder claims, says all management decisions were carried out with the approval of the directors, and is confident it “upheld its obligations to the highest legal and professional standards”.
RMG has been at the centre of leaseholder complaints elsewhere in the country.
Last November, the BBC reported on a leaseholder in Lincoln complaining of excessive service charges from RMG and a “conveyor belt of costs that aren't investigated, aren’t discussed with each owner, and owners aren’t replied to”.
In May 2024, a 34-year-old woman who has used a wheelchair since childhood told The Lead she had been unable to leave her RMG-managed flat in Sale freely because of a regularly broken lift in her building.
The Lead also reported last year on residents in nearby Urmston who complained of “paying out extortionate fees despite work rarely being done to a high enough standard, or even at all”. A Facebook group complaining about RMG has gone from 4,300 members last year to 6,800 members now.
Frith told The Lead he is aware of a “number of alarming issues regarding the company's practices”.
He said: “These concerns include overpricing, unreasonable price changes, premature bailiff collections, non-compliance with fire door and lift repairs, and a lack of Section 20 consultation. All compounded by a complete failure from RMG to communicate effectively with tenants.
“I am active in a parliamentary group of MPs committed to exposing these malpractices, their neglect and apparent active mistreatment of their residents, and I continue to use my influence in parliament to hold this cowboy operator to account.”
Mulligan is now secretary of the Broadoaks management company after new directors elected to the board last year decided to end RMG’s involvement. Leaseholders now manage Broadoaks themselves, with Hall another director.
Already, they say, they have been able to make improvements that weren’t carried out by RMG. Doors have been fixed – improving security – lighting has been improved, and there’s been a deep clean.
The roof repairs that were due to cost more than £32,000 have been carried out for less than £3,000. Grit bins in the car parks were filled with salt in time for the winter freeze.
With autonomy comes greater transparency on necessary works and bills, according to Hall.
Mulligan added: “Where before there was a sort of resentment – what are we paying for? – there is a sense now that people are getting to know each other. It’s caused a sense of community.”
The Conservative government rushed through the Leasehold and Freehold Reform Act just before last year’s general election, aiming to improve service charge transparency and increase the rights of residents to challenge charges. The new government is promising a draft bill later this year to strengthen the provisions.
In response to a question from Frith in parliament last week, Lucy Powell, Manchester Central MP and Leader of the House of Commons, said she too had a high caseload of concerns about property management companies.
She said: “The government are committed to ensuring that homeowners are protected from abuse and poor service at the hands of unscrupulous managing agents, which is why we will be bringing forward a draft leasehold reform bill later in the session.”
What RMG had to say
An RMG spokesperson said it was not instructed to clean the Broadoaks gutters further after the work was completed and that the replacement lightbulb charges were for electrical repairs. The cost of recommended roof repairs was because of “multiple leaks, and the works identified were considerable”.
The spokesperson insisted service charge demands were issued in accordance with the terms of the lease and that it aimed to respond to all customer enquiries within 48 working hours.
The spokesperson said: “Throughout our tenure, all management decisions, maintenance activities, and financial matters were carried out with the approval of the directors, who are themselves leaseholders on the development. These directors have always had final decision-making authority on all aspects of the property’s management.
“We are confident that RMG upheld its obligations to the highest legal and professional standards. RMG has consistently adhered to the terms of the lease and provided clear communication on service charges.
“All service charge budgets and year-end accounts were supported by a comprehensive breakdown of costs and taken in consultation with the company directors.
“Any concerns raised regarding historic management practices reflect decisions made collectively with the directors, and we trust that the current management team will address any unresolved matters in the best interests of the residents.”
About the author: Kevin Gopal is a Manchester-based journalist who has returned to freelancing after editing Big Issue North from 2007 until its closure in 2023. Prior to that he was assistant editor of Chinese community magazine SiYu, international editor of Pharmaceutical Executive, and deputy editor of North West Business Insider before freelancing widely on business, politics and policy for a number of titles. He is a leader in residence in journalism at the University of Central Lancashire.
This isn't the first time we've covered what RMG are doing, we reported in April 2023 about residents in Urmston trapped in a battle over service changes and in May last year - with the launch of The Altrincham & Sale Lead - we highlighted how 34-year-old Natasha Freedman, who is in a wheelchair, was left unable to leave her flat due to a faulty lift. They’ve also popped up on the BBC - across the North East, Lincolnshire and Hampshire. It highlights an increasingly broken housing system in the UK, both for buying and renting, which we’re continuing to shine a light on with our Brick-by-Brick campaign. Read our Westminster Editor Zoe Grunwald’s launch piece, more great writing from Hannah Fearn on the housing crisis and Kevin Gopal exploring what’s happening across social housing in the North of England. If you have a story related to housing you think we should be covering, then contact zoe@thelead.uk to let her know. Bringing you stories, solutions and exposing some of the malpractices and fractures in our housing system. Consider subscribing below to ensure we can keep bringing in-depth, insightful and solutions-focused writing on housing.
 |
|