The residents of a luxury apartment development in Birmingham are facing demands to pay over £200,000 in historic electricity bills they never knew existed. The debt, allegedly dating back nearly a decade, has emerged following multiple changes in property management at the Latitude Apartments complex in Digbeth.
Current management company, Centrick, claims the unpaid British Gas account was inherited from previous managers, leaving current leaseholders responsible for settling the substantial sum through increased service charges.
A complex history
The £34 million development, completed in 2009 with over 170 properties, has experienced significant management instability. The original managing agents, SDL Bigwood, ceased trading in 2022, followed by Pennycuick Collins who took over in 2020 before also stepping back from residential management.
Centrick assumed control in April 2025 and almost immediately informed residents of the historical debt through official correspondence. The company said it discovered a “second billing account” with British Gas that had remained unpaid, accumulating to £214,000.
Conflicting information
Confusion surrounds the exact period when this debt accumulated. While Centrick initially told residents the bills dated from 2014, British Gas describes them as “historical unpaid energy bills dating back to 2020.” Centrick has since revised its position, claiming the debt began accruing in 2015.
This discrepancy has raised concerns among residents about the accuracy of information being provided and the legitimacy of the demands for payment.
Financial impact
The proposed solution would see leaseholders absorb these costs through dramatically increased service charges. Some residents face monthly increases of approximately 70%, with charges potentially rising from £600 to £1,260 per month.
The burden would fall on all current residents, regardless of when they purchased their properties or how long they have lived in the development. Some leaseholders moved in years after the alleged debt began accumulating.
Many leaseholders have refused to accept the charges without proper evidence and documentation. They report having seen no official bills, legal documents, or detailed breakdowns of the alleged debt, while feeling pressured to pay without adequate justification or evidence.
Leaseholders claim they weren’t properly consulted about repayment arrangements or given opportunity to challenge the demands, while many question whether current residents should be responsible for debts incurred under previous management regimes.
Legal and practical questions
The situation raises complex legal questions about liability transfer in property management. When management companies change hands, the extent to which historical debts can be passed to current leaseholders depends on various factors including lease terms, legal obligations, and conveyancing procedures.
The fact that multiple management changes occurred over several years complicates matters further, as responsibility for discovering and addressing such debts may have shifted between different parties.
Centrick maintains it is acting “in good faith” to honour previous arrangements and is working with British Gas to obtain more information. The company acknowledges leaseholders’ concerns about the historical nature of the charges but states it cannot comment on how previous management handled the debt during property transactions.
British Gas confirms it is working with the current managing agent regarding the outstanding amounts, though the energy company no longer supplies the complex.
Previous manager Pennycuick Collins declined to comment.
Broader implications for leaseholders
When management companies fail or change hands, leaseholders can find themselves inheriting problems they had no role in creating. The situation demonstrates how property management instability can create long-term consequences for residents, who may face unexpected financial demands years after events occurred.
Seeking resolution
Several residents are reportedly seeking legal advice to challenge the charges, centring their argument on the principle that current leaseholders should not bear responsibility for debts they neither incurred nor were aware of, particularly without proper documentation and evidence.
The case may ultimately require legal resolution to determine whether such historical debts can legitimately be passed to current residents, and what standards of evidence and consultation should apply in such situations.
What this means for property buyers
For potential apartment buyers, this case underscores the importance of:
- Due diligence: Thoroughly investigating property management history and any outstanding liabilities before purchase.
- Legal protection: Ensuring conveyancing solicitors specifically check for historical debts and management issues.
- Lease scrutiny: Understanding exactly what financial obligations may arise under lease terms, including potential liability for historical costs.
- Management stability: Considering the stability and track record of property management companies when making purchase decisions.
The Latitude Apartments situation serves as a cautionary tale about the potential long-term consequences of property management failures and the importance of proper oversight in the leasehold sector. The residents’ fight may well set important precedents for how such disputes are resolved in the future.