I have long argued that this was a time bomb about to go off when renters see their service charges constantly going up, when services and repairs seem non-existent, and when the great unwashed (general public) are using/wearing out the spaces they are paying for without seemingly paying anything for the ‘privilege’.

I thought this would take a few years when large projects like Elephant Park had become neglected by the freeholder and later when the even larger Nine Elms project (including Battersea Power Station) also lost its shine. Still, the greed of the freeholder/investor/hedge fund holders and the almost zero transparency of these charges have been too tempting not to exploit to the full in a world of ‘needing a quick return on my investment’ philosophy.

‘But It has already happened’.

Leaseholders in Elephant Park are complaining (and rightly so) about their high and ever-increasing ‘service charges’. They have turned to the press to try and get some leverage. Note: If they refuse to pay, the freeholder can not only take back the property to reclaim the debt but also keep all the profit from the sale, in law!

So, how long before the freeholder needs some leverage over the government to calm the annoyed leaseholders? Below is one of many possible excuses they could use to try and get out of the responsibility of maintaining the pseudo-public space whilst retaining their profit margin:

‘How about we (the freeholders) renege on our agreement with the local councils and insist that they pay for the upkeep of the green space and external amenities?

Could we suggest that our residents are paying for this twice? Once with council tax and then with a service charge? Then we can cry; This is not fair! We support our leaseholders’!

This argument makes the local government responsible for the green spaces and, again, the enemy, while the freeholders look like they are campaigning for the leaseholders; what could possibly go wrong?

Service charges are taxes, and the freeholder is the tax collector who distributes to other shareholders, who, as investors, do nothing. No money goes to the local or national government, only to the unelected shareholders, who take the money and run; all of this is legal.