Johnstone tenants hit with steep rise in service charges

Those living at the sheltered housing development, in Bankside Avenue, have seen the monthly fee jump from £204 to £301 since April.

The charge covers a range of services, including staff costs, grounds maintenance, upkeep of communal areas, telecare services and communal utility costs.

Since April, residents at Hanover Court have also seen their rent increase from £381.98 to £401.08 per month.

Catherine Johnston, who lives at the Johnstone complex, said the service charge did not cover the energy costs in residents' flats.

The 73-year-old said: "I burn as little electricity as I can, as I'm frightened of what the bill is going to be like.

"Hanover is relying on us claiming benefits, but not all of us are entitled to benefits, so every month it is eating into our savings.

"I now don't buy the food that I used to get, I've just been buying whatever I can afford."

Meanwhile, fellow resident Margaret Ross, 63, believes there was a lack of consultation provided by Hanover Scotland before the rise in charges.

She said: "We're not seeing any benefits from the service charge jumping up an extra £100 per month.

"Instead, it has got to the stage where, to quote the popular term, people are having to choose between heating and eating.

"Residents shouldn't have this worry at this stage in their lives, as it doesn't just affect their physical health but also their mental wellbeing."

A spokesperson for Hanover Scotland said the cost-of-living crisis has had a considerable impact on their running costs.

They added: "In November 2022, all tenants were consulted on a proposed rent increase of 5% or 7%. The majority opted for 5%, which was therefore the increase applied from April.

"Ahead of our annual increase, we also met with residents at Bankside Avenue on February 9 to discuss the increase in charges, amongst other matters. During these meetings, we indicated the reasons for the proposed increases in the service charges and stated that they were related to matters which were regrettably outwith our control.

"The higher-than-normal increases to the service charges are primarily due to the communal energy costs, which include communal lighting, heating and running laundry appliances. As Hanover Court is a sheltered housing complex, we are obliged to keep these areas at a comfortable temperature for our residents.

"Unfortunately, significant increases in utility costs have led to substantial rises in the service charges at many of our developments. Hanover's previous three-year contracts for electricity and gas, entered in 2019 and 2020 respectively, have come to an end and new contracts have been entered at significantly higher tariffs than the previous contract.

"These increased tariffs reflect the current energy market prices available which are impacting everyone and are outwith Hanover's control. We have entered into a one-year contract to April 2024 to allow us the flexibility to review should the energy market prices change.

"We fully appreciate that the increase is of great concern to our customers, and we are supporting them by whatever means we can. We recently wrote to all customers providing further information on the charges and support available to them through third-party organisations, as well as Hanover's own initiatives. We have accessed funding to directly support our customers with rising costs and we have offered monetary support through our internal Hanover Fuel Fund."