Since 2017 NHG has failed to provide reconciled accounts for leaseholder service charges, despite repeated requests from leaseholders. Following concerns raised about this to the residents’ association, we were able to connect those leaseholders and take action together on the issue.
In September 2022, the residents’ association arranged a visit from NHG’s then CEO, Kate Davies, and the board, to tour St Martin’s Estate. We took the opportunity to clearly state the frustration of residents to the CEO, who acknowledged that since the transfer of management to NHG there had been significant management issues. She announced that NHG had decided to appoint an Estate Operations Manager for St Martin’s Estate to address issues and improve the relationship between residents and NHG. That position was filled by Jan Nairn. At the time of the meeting Kate Davies’ departure from NHG had been announced, but we were assured that that the situation of the estate would remain a priority for resolution.
In parallel, a few leaseholders had escalated their complaints to the Housing Ombudsman, who instructed NHG to provide financial compensation to the leaseholders. One of those leaseholders also held multiple meetings with NHG’s Chief Financial Officer (who has also since left the organisation) to attempt to resolve the ongoing issues with accounts and took the issue to Lambeth’s Cabinet Member for Housing. In the absence of a resolution, the leaseholder took NHG to tribunal, which forced NHG to reconcile the accounts as it was ordered by the judge.
In summer 2023 NHG acknowledged that there had been administrative errors, leading to a failure to provide reconciliations of the service charge accounts for leaseholders for the period of 2017 to 2023. The final accounts provided, showed the estate accounts to have been in surplus for most of those six accounting years, meaning that most leaseholders were due a partial refund. The residents association conducted several door knocking sessions and a phone call campaign to ensure all residents knew about the refund. We also encouraged all residents to have the refund paid directly to their bank account.
So, what should you, as a leaseholder expect by now?
You should have received two letters from NHG. One concerning refunds for 2017 – 2022 and one for the financial year 2022/23. The contents of the letter were somewhat confusingly written, but are likely to say that NHG owes you money. The amount varies between leaseholders.
Two sets of refunds should be credited to your NHG service charge account
- End of Aug 2023 – refund for 2017-2022. The amount varies by property, as well as time as a leaseholder.
- End of November 2023– refund for the 2022/2023 financial year. Again, amount will vary across individual flats.
Remaining issues?
We are not sure all leaseholders received the money they overpaid. So we urge you to check your NHG service charge account, to ensure you received the refunds. Also check that the amounts refunded match the amounts promised in your NHG letters.
Can you get the money transferred to your bank account?
Yes. You will need to make a request to the Housing Officer, and send them proof of your bank account (copy of a bank statement showing your name, account number and sort code).
What if you have NOT received any refunds?
Please contact the residents’ association, explaining what you have not received, and please attach a copy of the letter which NHG sent to you about service charges. We suspect that not everyone received their refunds, but cannot be sure without your evidence.
General info: Why is it important you keep your residents association informed?
The discovery of incorrect NHG financial accounts, and the refunds, is the result of more than three years’ work by the residents’ association and a few active leaseholders. Help us to help you by informing us about your housing issues.