Want to know why we get a bill from FirstPort?

The single most common question we are asked is about FirstPort and our maintenance bill. It was also one of the main drivers for forming the first Residents Association back in 2019.  Want to know what's behind it all?

The short answer ...

... is 'Its the Law'.  And you agreed to it when you bought your house.  You have a 'deed of transfer', known technically as a 'TP1', which sets out your responsibilities. Your solicitor should have explained this to you.  But if you want to check, you can download a copy of a TP1 here.  In it there are covenants (legally binding agreements) that you must keep.

Link:  Download a copy of the TP1 Transfer Deed with the Covenants
Link:  Download an extract containing the Covenants that apply to your house.
Link:  Download a copy of the Memorandum and Articles of Association for our Company.

The longer answer...

Faced with ever-increasing pressures on Council Tax, many local authorities decided to reduce their costs by requiring home-owners on new estates to pay separately for the upkeep of the common areas of those estates.

They did this by making it a condition of planning permission that an Estate Management Company (EMC) was set up to manage and maintain these common areas, and that every property built would be required as a condition of purchase to become a member of that company and to pay a proportion of the costs incurrred.

With proper management and oversight, it's an idea that could work well. But in some places where there are no effective controls on Estate Management Companies it has become a scandal, with EMCs making large profits from home-owners.

The Government has recognised this problem, and has begun a consultation about limiting their powers and giving residents greater control over the level of charges and the service provided by their EMCs. 

How is our Estate Management Company set up?

Our own EMC has been set up as a Company Limited by Guarantee - which ensures that all funds are spent on the purposes of the company, and that is gives us effective control, should we wish to exercise it.

The Estate Management Company set up by the Phase 7 developers is called ‘The Shepton Mallet (Phase 7) Management Company Limited', and all of the Phase 7 properties – some 97 households – are members and are required to pay an annual charge to this company. 

Who are FirstPort?

The developers (Bloor Homes and Thorner Homes) appointed a sole Director to run the EMC.  This Director appointed Chamonix, an Agent with whom Bloor Homes had a close relationship, to manage Phase 7 on their behalf. When we took over the EMC from Bloor Homes, we needed time to review the whole operation and make decisions for the future based on lived experience.  At about the same time, Chamoix was bought by FirstPort, a national Estate Management Company, and we continued to work with them as our Agent.

However, what many people fail to grasp is that FirstPort is OUR Agent - we instruct them, and we can appoint a diffierent agent if necessary.

Their first function is to maintain and manage the common areas of the Phase 7 development. It is FirstPort who organise the practical details of maintaining the common areas, such as cutting the grass, maintaining pathways, and so on.

Their second function is to raise funds to pay for this. The EMC has to set a budget and raise funds to meet that budget each year. The Bloor Homes appointed Director chose Chamonix to carry out this function as well, and FirstPort continued this process when they bought Chamonix, which is why our bills come from them.

Why do we pay FirstPort when we already pay Council Tax?

It's a good question!  One answer is that it's a sneaky move by the local Council to reduce their costs - making residents pay twice. Another is that it allows the local Council to reduce their costs, therefore benefiting all local residents.  A third is that 'It's the law - and we agreed to it when we bought our house'.  Choose whichever answer you like, but the bottom line is that we shouldn't be paying twice for the same thing.   The chance of Phase 7 residents getting a reduction in Council Tax equivalent to the money we pay for maintaining the common areas is about as likely as Pigs Flying; however, politicians have sometimes promised that Pigs will Fly, so it's worth a try!