Property giant Savills has to pulled out of managing a waterside development in Salford.
The firm is stepping down from its role at Middlewood Locks, an apartment complex near the River Irwell and Manchester city centre.
It comes after residents complained about receiving backdated energy bills from January 2021, with some claiming they faced charges of more than £1,000.
Leaseholders say they were told about the problem in July after receiving a letter which said their energy tariff had been incorrect for more than three years.
It led to Salford MP Rebecca Long-Bailey to call on Savills and energy provider ISTA to put the situation right, saying it had put a ‘huge financial burden’ on residents.
Ms Long-Bailey added:
“There are a lot of residents because it’s quite a new development, and a high turnover of people renting as well.
“A lot of people have only just moved in a few months ago, and they’re facing the prospect of having to pay back three years worth of bills that they are not responsible for.”
Leaseholders also complained about paying a higher service charge than Deansgate Towers, a ‘luxury’ development in Manchester with a pool, gym, and parcel room.
A resident also claimed there had been issues with gas bills, ‘underbudgeted’ service charges and frequent changes in staff.
They added:
“People are really upset, it’s putting a lot of stress on our lives.”
At the time, Savills said it ‘appreciate[d] the concerns’ and would clarify the situation on energy bills.
It added that the service charge was ‘budgeted in line with the growing needs of the properties’.
This week, a letter was shared with Middlewood Locks residents informing them that Savills has ‘mutually agreed’ to step down from managing the development.
It stated:
“Further to listening to recent feedback from leaseholders, we have held discussions with Savills and have mutually agreed with them that they will be stepping down from their role as managing agents at Middlewood Locks in relation to the buildings Charcoal, Quarry, Forge and Bellows.
“We will now start the process to identify and appoint a new managing agent. In the meantime we will be working closely with Savills to ensure that they continue to provide day to day management services to the buildings and to work with ISTA to resolve all of the outstanding matters.
“We will also ensure that a smooth handover from Savills to the new managing agent takes place in due course. We kindly ask that you continue to refer any queries directly to Savills regarding management matters.”
Savills was contacted and declined to comment.
